Ather Energy shares may list flat tomorrow amid 'lack of enthusiasm'

Ather Energy shares may list flat amid 'lack of enthusiasm'.

Ather Energy is set to make its stock market debut on Tuesday, May 6, after the Rs 2,981-crore initial public offering (IPO) concluded last week. However, analysts are expecting a flat or mildly negative listing due to limited overall investor enthusiasm.

The IPO, which was the first mainboard public issue of the current financial year, saw a subscription of 1.43 times, with demand largely driven by qualified institutional buyers (QIBs) and retail investors. The company had earlier raised Rs 1,340 crore from anchor investors.

The offer was priced in the range of Rs 304-321 per share. At the upper end, the issue size stood at Rs 2,981 crore, valuing the electric two-wheeler maker at around Rs 11,956 crore.

Market experts pointed to a cautious investor mood despite the company’s growth potential. "We expect a flat to mildly negative listing, likely in the range of ±5% under the best-case scenario," said Prashanth Tapse, Senior Vice-President (Research) at Mehta Equities Ltd.

The tepid subscription reflects concerns about the offer's pricing and the competitive nature of the electric two-wheeler (EV 2W) industry. Tapse noted that Ather's IPO was aggressively priced, especially when compared to its peer Ola Electric, whose post-listing performance has not impressed investors.

The IPO included a fresh issue of equity shares worth Rs 2,626 crore and an offer-for-sale of 1.1 crore shares by existing shareholders.

Ather Energy is the second company in the electric two-wheeler segment to tap the primary market after Ola Electric Mobility, which launched a Rs 6,145-crore IPO in August 2024.

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