Ather Energy shares slide over 5 pc after tepid stock market debut
Shares of electric two-wheeler maker Ather Energy made a muted debut on the stock exchanges on Tuesday, but soon lost momentum, falling over 5 per cent in morning trade.
The stock was listed at Rs 328 per share on the National Stock Exchange (NSE), which was 2.18 per cent higher than its issue price.
On the Bombay Stock Exchange (BSE), it opened at Rs 326.05, marking a 1.57 per cent gain.
However, the early gains did not last long. By 12.15 p.m., Ather Energy shares had dropped 5.5 per cent on the NSE to Rs 309.95 and 5.15 per cent on the BSE to Rs 309.25.
The initial public offering (IPO) of Ather Energy had received lukewarm investor interest, getting subscribed 1.43 times during the three-day bidding period from April 28 to 30.
Retail individual investors subscribed 1.78 times their allotted quota, while Qualified Institutional Buyers (QIBs) bid 1.70 times.
Non-institutional investors showed comparatively lower interest, with a subscription rate of 66 per cent.
The IPO was priced in the range of Rs 304 to Rs 321 per share, and the final issue price was Rs 321.
It comprised a fresh issue of Rs 2,626 crore and an offer-for-sale (OFS) of 1.1 crore shares, taking the total size to Rs 2,981 crore.
Despite a positive listing, the stock’s performance disappointed some investors as it had been trading at a grey market premium of around 4 per cent before the debut.
Market analysts noted that the listing was below expectations. Ather Energy's IPO marked the first mainboard public issue of the current financial year.
It is also the second electric two-wheeler company to go public after Ola Electric Mobility’s Rs 6,145-crore IPO in August last year.
Following the listing, Ather Energy's market valuation stood at Rs 12,144.05 crore.
