Ather Energy's IPO: A Steep Valuation Challenges the Electric Dreams

Ather Energy Ltd's initial public offering (IPO) on Tuesday saw its shares end at a significant discount of nearly 6% below the issue price, concluding at Rs 302.50 apiece on the BSE. Despite an initial rise, the stock quickly fell, suggesting investor hesitation over the valuation.

On its debut, Ather's stock on the NSE listed at a 2.18% premium but eventually closed at Rs 302.30, marking a steep decline. The company's market valuation stood robust at Rs 11,266.90 crore, amidst a BSE benchmark decline by 0.19% and an NSE Nifty drop by 0.33%.

The IPO, which combined a fresh issue worth Rs 2,626 crore and an offer-for-sale, was oversubscribed 1.43 times, driven by interest from QIB and retail investors. Despite this investor interest, analysts like Gaurav Garg from Lemonn Markets Desk noted the caution surrounding its valuation.

(With inputs from agencies.)