Ather Energy (NSE: ATHERENERG), the Bengaluru-based electric scooter pioneer, made its long-awaited public debut on May 6. But instead of a victory lap, the company’s stock fizzled after an early pop, exposing the market’s growing scepticism toward high-burn EV startups.
The ₹2,981 crore IPO was only just oversubscribed, and even with backing from heavyweight anchor investors like the Abu Dhabi Investment Authority, Ather’s first day on the bourses ended in disappointment. After opening near ₹328, shares dropped over 4% to close around ₹310. The red ink flowed as fast as the hype wore off.
Investors, already wary of stretched tech valuations and the capital-intensive nature of the EV industry, were quick to take profits. Ather is still deep in the red financially, and comparisons with Ola Electric down 36% since listing only intensified doubts.
Ather’s brand, product innovation, and manufacturing roadmap all remain solid on paper. But in this market, paper isn’t enough. Investors want visibility — not just on scale, but on profitability. With EV competition heating up and investors demanding cleaner cap tables and path-to-profit stories, Ather has some convincing to do.
Still, if the stock stabilises above ₹307 and buyers re-enter, a grind higher toward ₹325–₹333 isn’t out of reach. But for now, traders should expect volatility as the market tests just how much faith it has in India’s next-gen mobility bets.
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This post was last modified on May 06, 2025, 12:09 BST 12:09