On May 5, Ather Energy made its long-awaited debut on Dalal Street, but the excitement didn’t exactly match the hype.
The electric two-wheeler maker, listed at Rs 328 on the National Stock Exchange (NSE), offered investors a modest premium of 2.18% over its issue price of Rs 321. Over at the Bombay Stock Exchange (BSE), the stock opened at Rs 326.05, marking a slightly lower premium of 1.57%.
For those expecting fireworks, this debut was a bit of a damp squib. But let’s not rush to judgment just yet. After all, a stock’s opening price doesn’t tell you everything about its long-term potential. And, in Ather’s case, there could be much more to come.
Congratulations to Ather Energy Limited on getting listed on NSE today.
Ather Energy Limited is an Indian electric two-wheeler (E2W) company engaged in the design, development, and in-house assembly of electric scooters, battery packs, charging infrastructure, and supporting… pic.twitter.com/NFARgtaKOi— NSE India (@NSEIndia) May 6, 2025
What’s the Deal with Ather Energy’s IPO?
Ather Energy’s IPO raised a massive Rs 2,980.76 crore, which is no small feat. The company sold shares in the fixed price band of Rs 304-321 per share, with a lot size of 46 shares.
The IPO was open for bidding between April 28 and April 30, and it attracted a good amount of interest, though it wasn’t a complete sell-out. The overall subscription was just 1.43 times, meaning there weren’t enough bids to oversubscribe by a huge margin.
However, it wasn’t all bad news. The portion reserved for qualified institutional buyers (QIBs) was subscribed 1.70 times, and the retail portion was booked 1.78 times.
The employee portion saw a strong demand, with subscriptions at 5.43 times. But for the non-institutional investors, the picture was less rosy, with just 66% of their portion subscribed.
So, what’s the takeaway? While the IPO was far from a runaway success, it’s important to remember that not all IPOs fly off the shelves immediately. It’s possible that some investors were holding back, waiting for a clearer picture of the company’s future prospects.
Also Read India’s IPO Market Is Stalling — But Not for the Reasons You’re Being Told
What Does This Mean for Investors?
For the average person, it means that Ather Energy is still in its early days as a public company. The muted debut might have left some investors wondering whether it’s worth holding on to. But the truth is, Ather’s future prospects could be brighter than they seem right now.
Ather Energy has built a solid reputation as one of India’s leading electric two-wheeler manufacturers, and it operates with a vertical integration model, meaning it handles everything from design to manufacturing and even charging infrastructure.
This makes it less dependent on third parties, which could give it an edge in the rapidly growing EV market.
India’s electric vehicle (EV) market is still in its infancy, but the demand is only going to rise as consumers shift away from traditional petrol vehicles.
With rising fuel prices and increasing awareness of environmental issues, more people are likely to consider EVs as their next vehicle purchase. Ather, with its strong tech and product lineup, could be well-positioned to capitalize on this shift.
But here’s the catch: the competition in the EV space is heating up. Several new companies are entering the market, and established players are ramping up their EV offerings. This means Ather will have to work hard to stay ahead of the pack.
Is This a Good Time to Buy Ather Energy?
The short answer? It depends. If you’re someone looking for immediate gains, this muted debut might make you think twice. But if you’re an investor with a long-term perspective, Ather’s position in the EV market could make it a good bet for the future.
With the company still young and the market ripe for growth, Ather could be one of the companies that benefits as electric vehicles become the norm rather than the exception.
It’s all about patience. The stock might not give you immediate fireworks, but in the long run, the potential for growth is undeniable.
The Bottom Line
Ather Energy’s muted debut on May 5 might have disappointed some investors, but this is just the beginning. The company’s future prospects are bright, especially in India’s booming electric vehicle market.
While the stock didn’t explode out of the gate, it could still be a smart investment for those willing to hold on and wait for the long-term potential to unfold.
Also Read Ather Energy IPO: Did You Make the Cut? Check Your Allotment Status Now!
