Muted Listing for Ather Energy: What's Investor & Sector Sentiment

In what was once expected to be a landmark moment for India’s electric vehicle (EV) ecosystem, Ather Energy’s stock market debut has turned out to be less of a thunderous roar and more of a cautious whisper. The Bengaluru-based EV startup — once the darling of India’s clean mobility transition — listed on the BSE and NSE with only a modest premium, before quickly sliding into the red. But behind the quiet numbers lies a story pulsing with tension, timing, and a telling reflection of where India’s EV sector currently stands.

Ather Energy IPO

Ather's IPO — priced at ₹321 per share — saw its stock list at ₹328 on the NSE and ₹326.05 on the BSE, marking a modest 2.18% and 1.57% gain, respectively. But the excitement was short-lived. During the day’s trading, the stock dipped more than 5% to hit an intraday low of ₹308.95, a performance that mirrors the growing sense of unease in India’s EV investment climate.

Once a Star, Now Under Scrutiny

Just a year ago, Ather was poised to redefine the trajectory of India’s EV revolution. Having built a reputation for its tech-savvy scooters and loyal user base, the company was widely admired. Founders Tarun Mehta and Swapnil Jain were hailed as pioneers, staying committed to the clean mobility cause long before it became the startup buzzword of the decade.

But somewhere between admiration and ambition, the market changed — and so did Ather’s IPO story.

In August 2024, the company raised fresh funds at a valuation of $1.3 billion. Then, in a bold move, it filed its DRHP with the ambition of touching a $2.5 billion valuation. However, as sentiment in the EV sector started to cool — and as competing firms stumbled — Ather's own plans were quietly scaled back.

By the time its IPO hit the market in May 2025, Ather had slashed its expected valuation by nearly 44%, targeting a more modest $1.5 billion post-money valuation with an issue size of ₹2,900–3,200 crore — down from the earlier ₹3,500–3,700 crore.

The company’s IPO was subscribed just 1.43 times, buoyed largely by interest from Qualified Institutional Buyers (QIBs) and retail investors. The Non-Institutional Investors (NIIs) segment, notably, showed far less enthusiasm — subscribing only 66%.

A Market That’s Losing Its Spark?

This lukewarm response is not just about Ather. It’s about the entire EV startup sector grappling with an uncomfortable new reality: valuation fatigue, financial skepticism, and growing investor impatience.

Case in point: Ola Electric.

Ola's massive valuation and expansion dreams have hit multiple speed bumps. Sales dropped over 50% YoY in April 2025. Market share tumbled from 52% in April 2023 to 19% in December, recovering slightly to 25% by January 2025. Even worse, while Ola claimed sales of 25,000 units in February, government data showed just under 10,000 registrations — triggering a credibility crisis.

The Central Consumer Protection Authority (CCPA) has issued notices to Ola over 10,000 customer complaints. The Ministry of Transport is investigating registration discrepancies. Financial stress is mounting. Ola posted a $65 million loss in Q3 FY24, and at least one supplier filed an insolvency petition.

Against this backdrop, Ather’s cautious market debut is not just a company story — it's a sector-wide signal. The electric high is cooling off.

What's Behind Ather’s IPO Rush?

One reason behind Ather’s urgency to go public may lie in Maharashtra’s proposed incentive package — reportedly tied to the timely construction of a new manufacturing facility in Chhatrapati Sambhaji Nagar (Aurangabad). ₹927 crore from the IPO proceeds has been earmarked for this project, which is expected to ramp up the company's annual production to nearly one million units across new platforms (EL and Zenith), supplementing its current 4.5 lakh unit capacity at Hosur.

However, the details of the incentive plan — timelines, conditions, payouts — remain murky. Is the rush to unlock incentives driving the IPO more than strategic readiness?

Analysts like startup expert Jayant Mundhra think so. In a detailed LinkedIn post that has since gone viral, he pointed to the valuation cuts, delayed timelines, and “desperation to list at any cost” as red flags. “What if there’s more than what’s known to the public?” he asked — a question now echoing in investor circles.

From Narrative to Numbers

The admiration for Ather’s vision and product remains strong. But public markets are not swayed by sentiment alone. They require clarity, consistency, and confidence in execution.

With the IPO now behind it, Ather must prove that it can scale profitably, innovate rapidly, and manage investor expectations in a space that's becoming crowded and competitive. Ola Electric, TVS, and Bajaj are just a few of the names battling for dominance.

Can Ather maintain its identity as a premium, tech-first EV brand while balancing costs, infrastructure development, and revenue goals?

A Litmus Test for Indian EV Startups

Ather’s listing may be muted, but it’s no less significant. It marks a turning point — from romanticising the EV revolution to interrogating its realities.

Between BluSmart’s governance mess, Ola’s shaky foundations, and now Ather’s shifting story, the Indian EV dream is undergoing a much-needed stress test.

For now, the market has spoken — and it's asking tough questions. About scalability. About credibility. And about whether India’s EV startups are truly ready for the public stage.

Ather may have crossed a milestone, but the journey ahead looks anything but smooth.