Synopsis: Ather Energy fell 12% as a huge 44% share lock-in expiry flooded supply into the market, and a big block trade also happened. Massive shares unlocking and bulk deals together triggered selling pressure and volatility in the stock.
When a share lock-in period ends, it means the restricted shareholders, such as founders, PE/VC investors, anchor investors or employees with ESOPs, can now sell their shares in the open market. This unlock increases the available supply in the market. If a large percentage unlocks at once, selling pressure and volatility can increase.
This Indian electric two-wheeler (E2W) company, engaged in the design, development, and in-house assembly of electric scooters, battery packs, and charging infrastructure, is now in focus after its shareholder lock-in period ends and a large deal has taken place.
With market capitalization of Rs. 23,914 cr, the shares of Ather Energy Ltd are currently trading at Rs. 629 per share, down by 12% in today’s market session, making a low of Rs. 582.05, from its previous close of Rs. 667.15 per share. The stock listed on May 6, 2025, listed at a price of Rs. 328.00, which is 2.18% higher than the allotment price. The stock delivered a return of 108% in the past six months.
News
Around 16.23 crore Ather Energy shares became free to trade on Thursday because the 6-month lock-in period ended. This means about 44% of the entire company’s total shares are now allowed to trade in the open market.
Based on Tuesday’s closing price, these newly released shares are worth roughly Rs. 10,800 crore. In simple terms, a very big chunk of Ather shares just got unlocked at once, so there could be pressure on the stock as so much supply can now come to the market.
Also, a large deal has taken place, around 1.4 crore shares of Ather which are worth Rs. 856 crore approx got traded in one go at around Rs. 630 per share. That itself is about 3.66% of the full company.
Overall, the sharp decline in Ather Energy’s stock can be largely attributed to a sudden spike in potential supply hitting the market all at once. With nearly 44% of the company’s equity becoming freely tradable and a large institutional block deal coinciding on the same day, investors turned cautious, and sentiment weakened.
About the company
Ather Energy is a Bengaluru-based electric scooter company founded in 2013 that builds premium smart EV scooters and also develops its own charging network called Ather Grid. It focuses on technology-led two-wheelers with connected features, software, and OTA capability. It is considered one of the leading early movers in the Indian EV 2W space, but scale-up and profitability execution remain the next crucial phase.
Sales of the company declined from Rs. 676 cr in Q4FY25 to Rs. 645 cr in Q1FY26. Operating profit stands at a loss of Rs. 134 cr from a loss of Rs. 172 cr. Net loss narrowed down to Rs. 178 cr from Rs. 234 cr over the same period.
Written by Manideep Appana
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