The first mainboard initial public offer of financial year 2025-26 from Ather Energy had a muted debut on Tuesday, a day market sentiments remained cautious and volatility was high amid escalating geopolitical tensions.

Investment bankers and market analysts do not expect to see a rush of public issues now despite a healthy pipeline.

The stocks of the electric two-wheeler ended at ₹302.50 at the Bombay Stock Exchange, down 7.22 per cent against its opening price and down 5.76 per cent from its issue price.

Ather Energy became the second company in the segment to go public after Ola Electric, which was listed last year.

At the highest end of the price range, the company’s total IPO size is estimated at ₹2,981 crore, resulting in a valuation of ₹11,956 crore.

“Ather Energy made a muted debut on the stock market, opening with a modest 2 per cent gain... The stock’s weak listing and subsequent dip reflect cautious investor sentiment around its steep valuation,” Gaurav Garg, analyst at Lemonn Markets Desk, said.

IPO pipeline

Ather’s debut was seen as a barometer of investor sentiment for primary issues this year, and its lacklustre entry into the market could further dent corporate confidence in dipping their feet in a choppy equity market.

At the start of the financial year, 49 companies had approval from the market regulator, proposing to raise ₹84,000 crore. Another 67 companies, looking to raise ₹1,02,000 crore, were waiting for Sebi’s approval for their public offers.

However, as the border tensions began to rise, several companies are now evaluating their IPOs. South Korean major LG Electronics, which was looking to raise an estimated ₹15,000 crore from the capital market by listing its Indian unit, has reportedly delayed its IPO, and the company has said that a final decision will be taken based on market conditions.

Two more companies — education loan provider Avanse Financial Services and contract drug maker Anthem Biosciences — are also likely to postpone their IPO plans, Reuters reported on Tuesday.

“There are only select institutional investors coming in at this point, given the global uncertainty and India-Pakistan tensions have not helped,” said Suraj Krishnaswamy, managing director of investment banking at Axis Capital.

“A public offer for a company typically only happens once, and many companies would rather let their approvals lapse than come up with a lacklustre debut in a volatile market,” an investment banker told The Telegraph.

Data from capital market regulator Sebi shows that the number of IPOs on the mainboard, which peaked to 30 at the end of Q3FY25, fell sharply to 10 at the end of Q4FY24, with no IPOs seen in March (and also April) asthe private sector went into a wait and watch mode amidUS tariffs disrupting global and domestic market sentiments.