Slight Premium Marks Market Debut

Electric two-wheeler pioneer Ather Energy entered the Indian stock market on May 6, 2025, with a subdued yet positive listing. Shares opened at ₹328 on the NSE and ₹326 on the BSE, just above the issue price of ₹321. This slight 2% premium reflected cautious investor optimism as public market enthusiasm showed signs of restraint.

IPO Performance Reflects Market Caution

Ather’s IPO, aiming to raise ₹2,981 crore (approximately $352 million), was subscribed 1.43 times. While retail and institutional investors participated, the overall response indicated tempered expectations. Ahead of the IPO, the company strategically reduced the offering size by about 15% and revised its valuation down by 44%, aligning with current market sentiment.

Broader IPO Landscape Remains Uncertain

The debut comes amid a broader cooling in India’s IPO market. Multiple companies have postponed or scaled down listing plans due to geopolitical tensions, market volatility, and global financial uncertainties. Investor appetite, particularly from large institutional players, has weakened, prompting a reevaluation of timelines and valuation expectations across sectors.

In 2025, IPO activity on India’s major exchanges dropped 58% compared to the previous year. Overall equity fundraising has declined by 18%. With over 50 companies facing expiring regulatory approvals, many are under pressure to either adjust offerings or postpone their public plans.

Strategic Vision for Growth

Despite the cautious debut, Ather Energy remains focused on long-term expansion. The funds raised will be channeled into building a new manufacturing facility, strengthening research and development, and expanding its product lineup. The company continues to compete in an increasingly crowded EV segment, going head-to-head with major players such as Ola Electric, Bajaj Auto, and TVS Motor.

With a strong product roadmap and a growing customer base, Ather’s leadership is betting on sustained demand for cleaner mobility solutions. While the listing may have lacked fireworks, it marks a strategic milestone in the company’s evolution.