Will Ather Energy overcome initial decline to achieve long-term growth?

Synopsis

The banal opened astatine ₹328 apiece connected NSE, logging a 2.2% premium implicit the contented price. On BSE, the banal opened astatine ₹326.05, up 1.6%. It ended the circumspect trading league astatine ₹302.50, down 5.8% beneath the IPO terms of ₹321 apiece.

Mumbai: Ather Energy, the archetypal mainboard listing connected BSE successful FY26, had a mildly affirmative commencement earlier the electrical two-wheeler shaper skid 6% connected Tuesday, mirroring the broader marketplace weakness that masked the comparatively respectable retreat for the biggest gauges.

The banal opened astatine ₹328 apiece connected NSE, logging a 2.2% premium implicit the contented price. On BSE, the banal opened astatine ₹326.05, up 1.6%. It ended the circumspect trading league astatine ₹302.50, down 5.8% beneath the IPO terms of ₹321 apiece.

"The contented opened positively, and I can't inquire for more, frankly," Ather's CEO Tarun Mehta told ET connected the sidelines of the company's listing ceremonial successful Mumbai. "Ultimately, the timing truly came down to the information that we are successful the midst of a fantastic maturation travel close now."

The company's book-built contented was subscribed 1.43 times with qualified organization buyers (QIBs) coming successful connected the last day.

Ather launched its ₹2,981-crore public issue betwixt April 28 and 30, aft raising ₹1,340 crore from anchor investors connected April 26.

Mehta said the institution is scaling up utilizing a capex-light retail model, and is tapping into India's expanding basal of value-conscious upgraders.

"This (growth) is lone with 260 stores pan-India, portion our peers are operating with a precise ample fig of stores. So, arsenic we commencement unlocking caller dealerships and we fto our caller products grow, I deliberation the maturation successful the adjacent word is going to beryllium fantastic," helium added.

Discussing the company's capital expenditure approach, Mehta said the institution has ever been cautious with currency deployment, focusing investments successful areas specified arsenic R&D and brand-building portion avoiding capital-heavy verticals specified arsenic company-owned retail outlets oregon compartment manufacturing.

This "capital discipline", helium added, would stay halfway to the company's operating DNA.

Of the nett proceeds from the IPO, ₹927.2 crore volition beryllium utilized to money Ather's caller manufacturing works successful Chhatrapati Sambhajinagar (formerly Aurangabad), Maharashtra, the institution said successful its contented prospectus. It has earmarked ₹750 crore for R&D, ₹300 crore for marketing, and ₹40 crore for indebtedness repayment. These funds volition beryllium deployed implicit FY26 to FY28.

According to the state-run Vahan data, Ather held a 14.3% stock of the electrical two-wheeler marketplace successful April 2025, down TVS Motor, Ola Electric, and Bajaj Auto.

Mehta said Ather would question to spell beyond the premium segment.

"Our stake is that our strategy of focusing connected the upgrading Indian lawsuit volition wage disconnected large dividends," Mehta said.

...moreless

...moreless