Ather Energy makes muted debut on Dalal Street, lists 2% above IPO price
Electric two-wheeler maker Ather Energy made a subdued debut on the stock exchanges Tuesday, listing at a modest premium of just over 2% despite being one of the most high-profile IPOs in India's EV sector.Shares of Ather opened at Rs 328 on the NSE, marking a 2.2% gain over the IPO price of Rs 321. On the BSE, the stock listed slightly lower at Rs 326.05, up 1.6%. The Rs 2,981-crore IPO, which ran from April 28 to 30, was subscribed 1.43 times, indicating lukewarm enthusiasm overall.advertisementAt the time of listing, the Bengaluru-based company was valued at around Rs 12,144 crore, slightly below its implied market capitalisation of Rs 12,300 crore at the upper end of the IPO price band (Rs 304–Rs 321).
Ahead of listing, the stock had commanded a grey market premium (GMP) of just 3%, a further sign of subdued sentiment.Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy is among the most recognised premium EV brands in the country. The vertically integrated company boasts its own design and tech stack, and operates Ather Grid — India's largest electric two-wheeler charging network with over 2,600 fast chargers across 300+ cities.Its current portfolio includes the flagship Ather 450 and the recently launched family scooter Ather Rizta, both positioned as high-tech, performance-focused alternatives in an increasingly competitive EV market.advertisementThe IPO comprised a fresh issue of Rs 2,626 crore and an offer-for-sale of Rs 354 crore. Proceeds are earmarked for expanding manufacturing capacity via its upcoming "Factory 3.0" in Chhatrapati Sambhajinagar, repaying debt, and boosting investment in R&D and marketing.Analysts say high R&D and distribution costs, along with price wars in the EV space, have kept profitability out of reach for now.Still, Ather's early-mover advantage, brand recall, and expanding capacity give it a strong base to build on. With its third factory poised to take total annual production capacity to 1.4 million units, the company is betting big on long-term demand for clean mobility.
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