Indian e-scooter maker Ather Energy falls in market debut

Ather Energy’s shares fell 3.3% in their market debut on Tuesday, reversing slight gains from the open, on worries over the company’s ability to weather intensifying competition in the electric two-wheeler industry.

The stock opened at 328 rupees on the National Stock Exchange of India, 2% higher than its offer price of 321 rupees, but slipped into negative territory.

It was trading at 310.40 rupees as of 10:44 a.m. IST, valuing it at $1.37 billion.

Ather’s $352 million IPO - the third-largest in India this year - was hauled over the finish line by institutional investors in what was considered a litmus test for India’s waning IPO market.

The overall IPO proceeds in India have dropped 15% in 2025, as per LSEG data, as investors remained jittery over slowing economic growth, shifting U.S. tariffs and recent geopolitical tensions.

India’s benchmarks to open higher; Ather Energy set for market debut

Ather, one of the first companies to sell e-scooters in India in 2018, had reduced its IPO size by roughly 15% and cut its targeted valuation by 44%.

“The electric two-wheeler segment remains highly competitive and capital-intensive, with most players, including the market leader, struggling to achieve sustainable profitability,” said Prashant Tapse, an analyst with Mehta Equities.

“The flat listing is justified when benchmarked against rival Ola Electric, whose post-listing performance has been underwhelming,” Mehta added.

Ola Electric shares have slumped 36% since the company’s market debut in August last year.

Ather, whose founder refers to their tech-loaded scooters as the “Apple of electric two-wheelers”, is counting on newer models to turn profitable and close the gap with rivals.

The Bengaluru-based company said in its prospectus that it will use most of the IPO proceeds to build a third factory and for research and development.