Why Did Ather Energy Shares Decline Over 5% After a Lackluster Stock Market Introduction?
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Synopsis
Ather Energy's stock market debut was underwhelming, with shares dropping over 5% shortly after listing. Investors showed lukewarm interest in the IPO, leading to disappointing performance. This article explores the details of Ather Energy's entry into the stock market and the factors influencing its initial performance.
Key Takeaways
- Ather Energy's shares debuted at Rs 328 but fell over 5% shortly after.
- The IPO was subscribed 1.43 times, indicating lukewarm investor interest.
- Retail investors showed more interest compared to institutional investors.
- The final issue price was Rs 321 per share.
- Ather Energy's valuation post-listing is Rs 12,144.05 crore.
Mumbai, May 6 (NationPress) The shares of Ather Energy, a manufacturer of electric two-wheelers, experienced a lackluster debut on the stock exchanges on Tuesday, swiftly losing steam and plummeting by over 5 percent during the morning trading session.
The stock debuted at Rs 328 per share on the National Stock Exchange (NSE), which was a 2.18 percent increase compared to its issue price.
On the Bombay Stock Exchange (BSE), shares opened at Rs 326.05, reflecting a 1.57 percent rise.
However, these early gains were short-lived. By 12:15 p.m., Ather Energy's shares had declined by 5.5 percent on the NSE, dropping to Rs 309.95, and by 5.15 percent on the BSE to Rs 309.25.
The initial public offering (IPO) of Ather Energy saw tepid interest from investors, achieving a subscription rate of 1.43 times during the three-day bidding period from April 28 to 30.
Retail individual investors subscribed 1.78 times their allotted shares, while Qualified Institutional Buyers (QIBs) subscribed 1.70 times.
In contrast, non-institutional investors showed significantly lower interest, achieving a subscription rate of only 66 percent.
The IPO was priced between Rs 304 and Rs 321 per share, with the final price set at Rs 321.
It included a fresh issue totaling Rs 2,626 crore and an offer-for-sale (OFS) of 1.1 crore shares, culminating in a total offering size of Rs 2,981 crore.
Despite a promising listing, the stock's performance fell below expectations, particularly as it had been trading at a grey market premium of approximately 4 percent prior to its debut.
Market analysts have remarked that the listing did not meet predictions. Ather Energy's IPO represents the first major public offering of the current fiscal year.
It is also noteworthy as the second electric two-wheeler company to publicly list, following Ola Electric Mobility's Rs 6,145-crore IPO last August.
Post-listing, Ather Energy's market valuation was recorded at Rs 12,144.05 crore.
Point of View
It’s crucial to note that Ather Energy's debut reflects broader trends in the electric vehicle market. While initial enthusiasm was evident, the subsequent decline highlights the importance of investor confidence and market conditions. Ather's performance will be closely monitored as it navigates this evolving landscape.
NationPress
23/05/2025
Frequently Asked Questions
What was the listing price of Ather Energy shares?
Ather Energy shares were listed at Rs 328 on the National Stock Exchange.
How much did Ather Energy shares fall after debut?
The shares fell over 5 percent in morning trade.
What was the subscription rate of Ather Energy's IPO?
The IPO was subscribed 1.43 times during the bidding period.
What was the final issue price of Ather Energy's IPO?
The final issue price was Rs 321 per share.
What does Ather Energy's market valuation stand at post-listing?
Following the listing, Ather Energy's market valuation was Rs 12,144.05 crore.
