Ather Energy shares declined over 6 percent in debut trade on Tuesday after a muted listing on the exchanges. Shares of the electric two-wheeler maker settled 6.54 percent lower at Rs 300 per share on the NSE to its issue price of Rs 321. The company's market valuation stood at Rs 11,173.79 against Rs 12,110.53 crore in the morning trade. The stock was down 8.54 percent against the open price in today's trade.
The stock started the trade at Rs 326.05, up 1.57 percent from the issue price on the BSE. Later, it climbed 3.70 percent to Rs 332.90. At the NSE, it listed at Rs 328, a premium of 2.18 per cent.
Ather Energy shares make subdued market debut, list at 2% premium to IPO price on NSE
The initial share sale got subscribed 1.43 times on the closing day of bidding on Wednesday, backed by oversubscription in QIB and retail investor categories. The Rs 2,981-crore initial share sale had a price band of Rs 304-321 apiece.
Should you buy, sell or hold?
Analysts believe the issue was aggressively priced, especially when benchmarked against peer OLA Electric, whose post-listing performance has been underwhelming. Ola Electric Mobility floated its Rs 6,145-crore IPO in August 2024.
Prashanth Tapse, Sr VP Research – Analyst at Mehta Equities, noted "We recommend a 'HOLD' only for high-risk taking investors, who are comfortable with short- to medium-term volatility while conservative investors may prefer a wait-and-watch approach, allowing the stock to establish a more reasonable valuation post-listing."
"Industry being in High Growth – High Competition and High Cash Burning segment, we will see high volatility both in business as well as in the price action, hence investors should be aware of risk in short to medium term investing," he added.
The electric two-wheeler (EV 2W) segment remains highly competitive and capital-intensive, with most players, including market leaders, struggling to achieve sustainable profitability and raising concern with new investors.
Gaurav Garg, Lemonn Markets Desk, added "The IPO saw a lukewarm response, with the retail portion subscribed just 1.89 times and the HNI segment at a mere 0.69 times. The stock's weak listing and subsequent dip reflect cautious investor sentiment around its steep valuation. However, continued downward pressure could help realign its valuation, potentially making it more attractive to value-conscious investors."
Ather Energy was the first mainboard public issue of the current financial year.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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