India-based electric vehicle manufacturer Ather Energy saw its share price rebound by 7% on May 7, 2025, despite an initial weak stock market debut. The stock opened at ₹289.90 on the Bombay Stock Exchange (BSE), later hitting ₹311.50. Although its listing performance was below expectations, the share traded above the issue price, giving IPO allottees cautious optimism.
Ather Energy, an Indian electric vehicle manufacturer headquartered in Bengaluru, Karnataka, witnessed a 7% recovery in its share price following a tepid stock market debut. The company specializes in high-performance electric scooters and is known for its innovation in battery technology and connected vehicle ecosystems.
On May 7, 2025, Ather Energy’s stock opened at ₹289.90 per share on the Bombay Stock Exchange (BSE). It reached an intraday high of ₹311.50 and a low of ₹287.30. The rebound came after a modest listing on May 5, where shares opened at ₹328 on the National Stock Exchange (NSE) and ₹326.05 on the BSE, slightly above the issue price of ₹321.
The Ather Energy IPO consisted of a fresh issue of equity shares worth ₹2,626 crore and an offer-for-sale (OFS) of 1.1 crore equity shares from existing stakeholders. Key selling entities in the OFS included the National Investment and Infrastructure Fund II, Internet Fund III Pte. Ltd., IITM Incubation Cell, IITMS Rural Technology and Business Incubator, and co-founders Tarun Sanjay Mehta and Swapnil Babanlal Jain.
Proceeds from the IPO are allocated across several areas for expansion. Ather Energy plans to utilize ₹927.2 crore for setting up a new manufacturing facility for electric two-wheelers in Maharashtra. An additional ₹40 crore will be used to reduce debt obligations, ₹750 crore will go toward research and development, and ₹300 crore is earmarked for marketing and brand initiatives. These investments are planned to be executed over fiscal years 2026 to 2028.
The IPO was managed by Axis Capital Limited, HSBC Securities & Capital Markets Pvt Ltd, JM Financial Limited, and Nomura Financial Advisory and Securities (India) Pvt Ltd. Link Intime India Private Ltd served as the registrar for the offering.
Despite an initial underwhelming listing, Ather Energy’s share price movement reflects market interest in India’s growing electric mobility sector and investor confidence in the company’s long-term strategy.
