Ather Energy's shares fell 3.3% in their market debut on Tuesday, reversing slight gains from the open, on worries over the company's ability to weather intensifying competition in the electric two-wheeler industry.

Ather Energy shares declined over 6 percent in debut trade on Tuesday after a muted listing on the exchanges. Shares of the electric two-wheeler maker settled 6.54 percent lower at Rs 300 per share on the NSE to its issue price of Rs 321. The company's market valuation stood at Rs 11,173.79 against Rs 12,110.53 crore in the morning trade.

The Ather Energy GMP had turned zero post IPO closure after the issue received muted response from investors. The premium had touched a peak of ₹17 on April 22, while it started sliding after that amid volatility in the secondary market and fading buzz for the EV maker’s public issue.