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Ather Energy stock opened at Rs 326 on the BSE, just 1.5% above its IPO price of Rs 321. For all the buzz around EVs, the listing was more whimper than boom. It signals what many in the market already feared: the appetite for flashy growth stories without profitability is wearing thin.
What's happening
Backed by Hero MotoCorp and Tiger Global, Ather's Rs 2,981 crore IPO had all the right headlines — fresh issue, brand recall, and a fast-growing EV market. Still, investors played it cool.
Here's how the numbers looked:
- IPO size: Rs 2,981 crore
- Fresh issue: Rs 2,626 crore
- Offer for sale: Rs 355 crore
- Subscription: Just 1.43 times
- Retail: 1.78x
- QIBs: 1.70x
- HNIs: 0.54x
The lukewarm response was already writing on the wall for today's subdued listing.
Why the market isn't charging up
There's a mix of reasons Ather's share price didn't zoom on debut:
- Tough market mood: Investors are becoming more selective. Not all startups get premium billing anymore.
- Profitability concerns: Ather is still in the red. For FY24, the company posted a loss of Rs 864 crore.
- Valuation reset: It had to slash its IPO size and settle for a valuation around Rs 12,000 crore, down from earlier ambitions of Rs 22,000 crore.
- Muted IPO trends: Recent issues haven't dazzled either. Caution is the new sentiment.
What it means for investors
Ather Energy isn't a fly-by-night player. It's a known name in the EV space with solid tech, and the funds raised will go into R&D and a new manufacturing plant, both essential for scaling up. That said, its listing shows that not even electric dreams can escape the gravity of market sentiment. Investors want growth, but they want profits too — or at least a clear road to them.
Ather's path to profitability is still under construction, and investors will be watching execution closely. For now, Ather's engine is running. But whether it accelerates from here or stays stuck in first gear depends entirely on how fast it can prove its business model.
Disclaimer: This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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