Ather Energy Ends First Trading Session 6% Below IPO Price

Ather Energy's shares continued their downward trend after listing, closing the first trading week 12% below the IPO price amid broader market volatility. The EV manufacturer's market capitalization settled at ₹8,200 crore, significantly below the ₹10,000 crore valuation sought during funding rounds. Multiple brokerages initiated coverage with 'hold' or 'sell' ratings, citing concerns about cash burn rates and delayed break-even projections. Ather's challenges reflect sector-wide headwinds including reduced FAME subsidies, battery cost inflation, and slowing demand growth in the premium EV segment. The company reported a 35% quarter-on-quarter increase in deliveries but faces margin pressures from rising input costs. Market sentiment suggests investors are taking a cautious approach to EV stocks until clearer profitability pathways emerge in the capital-intensive industry.