Electric two-wheeler manufacturer Ather Energy listed its shares on Indian stock exchanges on Tuesday, marking its entry into the public markets. The company’s shares opened at ₹328 on the National Stock Exchange (NSE), a 2.18 per cent premium over its IPO price, and at ₹326.05 on the Bombay Stock Exchange (BSE), a 1.57 per cent premium. However, the stock declined during the session and closed at ₹300.75 on the BSE, down 7.76 per cent from the listing price.
At the time of listing, Ather’s market capitalisation stood at ₹12,144.05 crore, according to BSE data.
IPO details and fund allocation
Ather Energy’s IPO was open for subscription from 28 to 30 April, with the company seeking to raise ₹2,981 crore. This included a fresh issue of ₹2,626 crore and an offer for sale component. The IPO was subscribed 1.43 times overall, with retail investors and qualified institutional buyers subscribing 1.78 times and 1.7 times, respectively. The portion allocated to high net-worth individuals was subscribed 0.66 times, while employee subscriptions were 5.43 times the reserved quota.
Anchor investors, including SBI Mutual Fund, contributed ₹1,340 crore ahead of the IPO launch. SBI MF was the largest anchor investor, with a commitment of ₹310 crore.
The company plans to use ₹927.2 crore of the net proceeds to establish a new manufacturing facility in Chhatrapati Sambhajinagar, Maharashtra. Other allocations include ₹750 crore for research and development, ₹300 crore for marketing, and ₹40 crore for debt repayment. These funds are expected to be deployed between FY26 and FY28.
Competitive landscape
Ather competes primarily with Ola Electric, which had a 34.08 per cent share of the electric two-wheeler market at the end of December 2024, compared to Ather’s 10.7 per cent In the first nine months of FY25, Ola sold 3.08 lakh units, while Ather sold 1.08 lakh.
