Ather Energy Share Price Highlights: Stock ends at ₹300 apiece on NSE, 6.54% discount to IPO price

Ather Energy share price ended listing day at ₹300 on NSE, a 6.54% discount to the IPO price of ₹321, and at ₹302.50 on BSE, a 5.76% discount.

According to Mohit Gulati, the CIO and managing partner of ITI Growth Opportunities Fund, Ather Energy's muted listing highlights the sector’s challenges and the need for patience from investors. While its premium positioning and steady revenue growth are positives, near-term volatility is expected as the company invests heavily in capacity and market expansion. Ola’s dominance and market cap strength will continue to cast a shadow on Ather’s valuation until Ather can decisively break out with its own growth and profitability story.

According to Garg, Ather Energy made a muted debut on the stock market, opening with a modest 2% gain before slipping 8% intraday to close at approximately ₹303—below its lower issue price of ₹304. The IPO saw a lukewarm response, with the retail portion subscribed just 1.89 times and the HNI segment at a mere 0.69 times. The stock's weak listing and subsequent dip reflect cautious investor sentiment around its steep valuation. However, continued downward pressure could help realign its valuation, potentially making it more attractive to value-conscious investors.

In FY24, Ather experienced a loss before taxes of ₹1059.7 crore, which is considerably greater than the ₹864.5 crore loss recorded in FY23 and the ₹344.1 crore loss from FY22. Additionally, the company faced flat revenue growth in FY24, reporting revenues of ₹1753.8 crore, a decrease from ₹1780.9 crore in FY23.

Company’s product ecosystem consists of E2Ws, Accessories, Atherstack software and Charging Infrastructure.

1. Strategic expansion of the product portfolio through multi-product technology platforms (currently developing 2 new E2W platforms: a new scooter platform (the EL platform) and a motorcycle platform (the Zenith platform).
2. Expand and deepen the distribution network in India and beyond.
3. Securing the cell supply chain through long-term partnerships

Half of the equity shares allocated to anchor investors in the anchor investor segment will be subject to a lock-in period of 90 days from the allotment date, while the other half will be locked in for a period of 30 days starting from the allotment date.

Ather Energy IPO consists of a fresh issuance of equity shares valued at ₹2,626 crore, alongside an offer-for-sale (OFS) of 1.1 crore equity shares by promoters and other shareholders. The OFS includes current investors such as National Investment and Infrastructure Fund II, Internet Fund III Pte. Ltd, IITM Incubation Cell, IITMS Rural Technology and Business Incubator as well as promoters Tarun Sanjay Mehta and Swapnil Babanlal Jain who will be offloading their shares.

Mohit Gulati, the CIO and managing partner of ITI Growth Opportunities Fund explained that for investors, Ola Electric represents a compelling high-growth, high-risk opportunity, particularly for those seeking potential market dominance and vertical integration. However, the volatility associated with its highly public founder, Bhavish Aggarwal, could impact stock performance, and profitability is still anticipated to be on the horizon.

Ather Energy’s IPO is ideal for investors looking for a differentiated, premium EV brand with solid margins and a more cautious growth strategy. Despite facing intense competition and yet to achieve profitability, its focus on quality and operational discipline sets it apart.

1. Ability to pioneer new technologies.
2. Vertically integrated approach to product design with strong in-house R&D capabilities.
3. Software-defined ecosystem that drives customer engagement and margins.
4. Scalable technology platform enabling accelerated product launches.

Ather Energy is a specialised electric vehicle company that produces electric two-wheelers (E2Ws) along with a comprehensive ecosystem of products, including their proprietary software, charging networks, and smart accessories, all developed and designed in India.

In FY24, Ather experienced a loss before taxes of ₹1059.7 crore, which is considerably greater than the ₹864.5 crore loss recorded in FY23 and the ₹344.1 crore loss from FY22. Additionally, the company faced flat revenue growth in FY24, reporting revenues of ₹1753.8 crore, a decrease from ₹1780.9 crore in FY23.

The business model of the company is based on four fundamental pillars: (i) an integrated approach to design from top to bottom, (ii) a software-driven ecosystem, (iii) a premium market positioning, and (iv) an efficient use of capital throughout the value chain operations. This model aims to provide products that prioritise quality and enhance user experience.

Ather Energy IPO is estimated at ₹2,981 crore, which includes a sell-off component of about ₹355 crore, enabling its founders to sell 19.60 lakh shares.

The shares are being priced between ₹304 and ₹321 each. Meanwhile, the average cost per share for the founders was ₹21.09. With Ather Energy's shares positioned at the upper limit of the price range at ₹321, the founders stand to gain impressive returns of 1,422%.

Ather Energy share price was trading at ₹311.35 per share on NSE, marking a 5.08% decrease at 11:38 IST, and at ₹312.10 per share on BSE, showing a 4.28% decline.

Manufacturing takes place at the Hosur Factory in Tamil Nadu, which had a yearly installed capacity of 420,000 electric vehicles and 379,800 battery packs as of March 2024.

According to Avinash Gorakshakar, Head of Research at Profitmart Securities, Ather Energy's listing was on expected lines, as Ather Energy's IPO price was very aggressive. Ather Energy's share price going ahead would depend on what data the company delivers in terms of volume growth and visibility of profits coming in. Narratives will initially drive the stock, but fundamentals will need to support it going forward.

According to Vinit Bolinjkar, Ather Energy’s market debut was notably subdued—its shares opened at ₹328 on May 6, 2025, reflecting only about a 2% uplift from the ₹321 IPO price, despite grey‑market indicators having suggested stronger traction. With the issue subscribing just 1.43× overall, the QIB and retail tranches filled up while the non‑institutional segment lagged, underscoring that even marquee EV names must rein in valuations and secure heavyweight anchors to ensure a smooth listing.

“This tepid response mirrors a broader chill in India’s primary markets: several large‑ticket IPOs have been deferred, and Prime Database notes a 58% year‑on‑year decline in listings through early 2025 alongside an 18% drop in total funds raised. In this environment, issuers lacking clear pathways to profitability or top‑tier anchor support are likely to delay launches or rethink pricing, whereas truly standout, well‑funded offerings may still seize the limited windows of opportunity,” added Bolinjkar. 

In a discussion with CNBC-TV 18, Tarun Mehta, the CEO of Ather Energy, expressed optimism about growth in the near future, suggesting that margins, volumes, and market share are expected to improve in FY26. He remarked that the volume growth for FY26 is anticipated to surpass what was experienced in 9MFY25.

1. Ather Energy sources all EV components from suppliers for in-house assembly of E2W.
2. It relies on imports from countries like China, which may be affected by regulatory or policy changes.
3. Any disruption in the supply, pricing, or quality of lithium-ion cells could adversely impact operations.

• Strong Market Position in a High-Growth E2W Segment
• Capacity Expansion Aligned with Market Opportunity
• Demonstrated Cost Reduction and Margin Improvement Focus
• High-Quality Product Ecosystem with Recurring Software Revenue and Margin Expansion

India was the largest global market for motorised two-wheelers in CY2023. During the fiscal year 2024, total domestic sales amounted to 18.4 million units. In the first nine months leading up to December 31, 2024, the Indian two-wheeler market recorded sales of 15.3 million units, positioning it well for ongoing growth in fiscal year 2025.

Ather Energy share price was trading at ₹311.10 per share on NSE, marking a 3.08% decrease at 10:35 IST, and at ₹312.15 per share on BSE, showing a 4.42% decline.

"As expected, we see a flat listing, which was justified, as the issue was aggressively priced, especially when benchmarked against peer OLA Electric. We continue to believe the electric two-wheeler (EV 2W) segment remains highly competitive and capital-intensive, with most players, including market leaders, struggling to achieve sustainable profitability and raising concern with new investors.

Given these facts and risks, we recommend a “HOLD” only to risk taking investors, who are comfortable with short- to medium-term volatility while conservative investors may still prefer a wait-and-watch, allowing the stock to settle with some reasonable valuation post-listing," said Prashanth Tapse.

Ather Energy share price made a lukewarm debut on the bourses today. On NSE, Ather Energy share price opened at ₹328 per share, 2.18% higher than the issue price of ₹321. On BSE, Ather Energy share price today opened at ₹326.05 apiece, up 1.57% than the issue price.

The company is promoted by Tarun Sanjay Mehta, Swapnil Babanlal Jain, and Hero MotoCorp Limited. According to the RHP, the promoters collectively own 156,118,716 equity shares, representing 51.80% of the total issued, subscribed, and paid-up share capital on a fully diluted basis.

As per the red herring prospectus (RHP), the company's listed peers are Hero MotoCorp (with a P/E of 20), Bajaj Auto (with a P/E of 29), Ola Electric Mobility, TVS Motors (with a P/E of 68), and Eicher Motors (with a P/E of 37).

Ather IPO lot size was 46 equity shares and in multiples of 46 equity shares thereafter.

Ather intends to allocated ₹927.2 crore of the total IPO proceeds to set up an electric two-wheeler manufacturing plant in Maharashtra, allocate ₹40 crore for debt repayment, invest ₹750 crore in research and development, and spend ₹300 crore on marketing initiatives. The utilisation of these funds will occur over the fiscal years 2026 to 2028.

“Ather Energy IPO has received a mixed response. Retail investors subscribed 1.89 times their quota, and institutional buyers showed some interest, but overall demand was not very strong, especially among non-institutional investors. In the grey market, the premium is currently modest at around ₹7 per share, indicating only about a ~3-5% expected gain on listing day. This is much lower compared to more hyped IPOs,” said Gaurav Goel, Founder & Director at Fynocrat Technologies

Axis Capital Limited, HSBC Securities & Capital Markets Pvt Ltd, JM Financial Limited, and Nomura Financial Advisory and Securities (India) Pvt Ltd are the book running lead managers for Ather IPO. Link Intime India Private Ltd is functioning as the registrar for this offering.

Ather Energy IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors. The employees have been reserved upto 100,000 equity shares, with a discount of ₹30 per equity share.

Ather Energy IPO raised ₹1,340 crore from anchor investors just days before the public subscription of its initial share sale commenced. Notable anchor investors who received share allocations include the Custody Bank of Japan, Franklin Templeton, the Abu Dhabi Investment Authority, Eastspring Investments, Morgan Stanley Investment Management, and Societe Generale.

Among the anchor investors are PSBI Mutual Fund, Aditya Birla Sun Life Mutual Fund, ICICI Prudential Mutual Fund, Invesco Mutual Fund, Aditya Birla Sun Life Insurance, ITI Mutual Fund, and Union Mutual Fund.

According to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, flat listing seems to be justified, as the issue was aggressively priced, especially when benchmarked against peer OLA Electric, whose post-listing performance has been underwhelming. 

“We believe the electric two-wheeler (EV 2W) segment remains highly competitive and capital-intensive, with most players, including market leaders, struggling to achieve sustainable profitability and raising concern with new investors,” said Tapse.

Ather Energy IPO was subscribed 1.43 times by the end of bidding on Wednesday, driven by strong interest from both qualified institutional buyers and retail investors. The Retail Individual Investors (RIIs) segment achieved a subscription rate of 1.78 times, while the Qualified Institutional Buyers (QIBs) portion was subscribed 1.70 times, despite a market volatility. The subscription rate for non-institutional investors stood at 66%, and the employee portion was booked 5.43 times. 

Ather Energy IPO GMP today or grey market premium is +14. This indicates Ather Energy share price were trading at a premium of ₹14 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Ather Energy share price was indicated at ₹335 apiece, which is 4.36% higher than the IPO price of ₹321.

According to the analysis of the past 15 sessions of grey market activities, the IPO GMP is moving upward today, indicating a potential strong listing. The minimum GMP recorded is ₹0.00, while the maximum GMP reaches ₹17, as per the experts at investorgain.com.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.