Ather Energy share price rebounds post poor listing, trades above IPO price. What should allottees do?

Ather Energy share price saw a recovery during Wednesday's trading session following a disappointing debut, although it continued to trade below the inITIal listing price. After a shaky start earlier in the day, Ather Energy share price rose by 7%. Ather Energy share price today opened at ₹289.90 apiece on the BSE, the stock touched an intraday high of ₹311.50, and an intraday low of ₹287.30 per share.

Ather Energy shares had a modest launch on the stock exchanges on Monday. On the NSE, the shares opened at ₹328, reflecting a 2.18% increase from the issue price of ₹321. Meanwhile, on the BSE, the shares began trading at ₹326.05 each, which is a rise of 1.57% compared to the issue price.

On its first day of trading, Ather Energy shares closed at ₹300 on the NSE, representing a 6.54% decrease from the IPO price of ₹321, and at ₹302.50 on the BSE, which is a 5.76% decline.

Arun Kejriwal, the founder of Kejriwal Research and Investment Services, expressed that the Ather Energy IPO listing was underwhelming, particularly considering the excitement exhibited by retail investors. This reflects the general sentiment surrounding Ather Energy. Consequently, if investors possess shares from the IPO, it is recommended to establish a stop loss in the range of ₹293-295. Assess whether to continue holding the investment or to sell and wait for the company's results for the March quarter.

Further, Mohit Gulati, the CIO and managing partner of ITI Growth Opportunities Fund explained that Ather Energy's muted listing highlights the sector’s challenges and the need for patience from investors.

While its premium positioning and steady revenue growth are positives, near-term volatility is expected as the company invests heavily in capacity and market expansion. Ola’s dominance and market cap strength will continue to cast a shadow on Ather’s valuation until Ather can decisively break out with its own growth and profitability story, added Gulati.

(more to come)

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