Shares of Ather Energy, the electric two-wheeler manufacturer, dropped 5% to ₹311.45 apiece on Tuesday after debuting at a 2.2% premium over its issue price of ₹321 on the National Stock Exchange (NSE). The stock had opened at ₹328 on the NSE and ₹326.05 on the BSE.
As of 11:25 AM, Ather Energy’s traded volume stood at 105.37 lakh shares with a traded value of ₹340.91 crore. The company’s market capitalisation currently stands at ₹11,603.98 crore. The stock has seen an intraday high of ₹333 and a low of ₹308.4.
Ather’s IPO, which ran from April 28 to April 30, received a positive response from investors. The retail portion was subscribed 1.78 times, while Qualified Institutional Buyers (QIBs) subscribed 1.70 times. Non-Institutional Investors (NIIs) took up 66% of their allocation, and employee participation was notably strong at 5.43 times.
Despite reporting a FY24 loss of ₹1,059.7 crore, Ather posted a strong CAGR of 107.1% in revenue from FY22 to FY24, reaching ₹1,753.8 crore. The company remains bullish on future profitability with plans to leverage its proprietary EV technology and expand both domestically and internationally.
Founded in 2013, Ather Energy offers electric scooters, charging infrastructure, software, and accessories, all developed in-house. Its upcoming products include the EL scooter platform and the Zenith motorcycle.
The broader Indian two-wheeler market is projected to grow at a 7% CAGR until FY31, with electric scooters expected to account for 70% of total sales by then.
The decline in share price post-listing is likely due to profit booking by early investors.
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