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.

Ather Energy, a leading electric scooter manufacturer, raised Rs 2,981 crore through its IPO, with plans for a new facility, R&D, and marketing. Despite stiff competition from Ola Electric, Ather continues to grow.