Ather Energy, a Bengaluru based electric two wheeler company, started its initial public offering (IPO) on April 28, 2025. This move is a significant turning point that attempts to improve the company’s standing in the Indian EV market. The details of the Ather Energy IPO are examined in this article, along with its financial outcomes, strategic objectives, and broader implications for investors and the EV industry.
Ather Energy IPO Company Overview
India’s EV revolution has been led by Ather Energy, which was founded in 2013 by Tarun Mehta and Swapnil Jain. The Ather 450X and other high-performance electric scooters helped the company become well known. Ather started selling commercially in 2018 and positioned itself as a high end e-scooter brand. Even though Ather entered the market early, it still has to contend with fierce competition from well established firms like Ola Electric, TVS Motor and Bajaj Auto. According to market share, Ather is currently the fourth largest producer of electric scooters in India as of FY24.
Ather Energy IPO Details
The IPO comprises a fresh issue of Rs 2,626 crore and an OFS of Rs 355 crore. Notably, major shareholder Hero MotoCorp, holding around 40% stake, has opted not to participate in the OFS .
| Issue Type | Bookbuilding IPO |
| Issue Price Band | Rs 304 to Rs 321 per share |
| Lot Size | 46 shares per lot |
| Issue Size | Rs 2981 crore |
| Fresh Issue | Rs 2626 crore |
| Offer for Sale (OFS) | Rs 355 crore |
| Listing at | BSE and NSE |
| Book Running Lead Managers | Axis Capital Limited, HSBC Securities Pvt Limited , JM Financial Limited, Nomura Financial Advisory |
| Registrar | Link Intime India Private Limited |
Ather Energy IPO Timeline
Find Aether Energy IPO tentative dates below.
| Open Date | 28-Apr-2025 (Monday) |
| Close Date | 30-Apr-2025 (Wednesday) |
| Allotment | 02-May-2025 (Friday) |
| Initiation of Refunds | 05-May-2025 (Monday) |
| Demat Credit of Shares | 05-May-2025 (Monday) |
| Listing Date | 06-May-2025 (Tuesday) |
| Cut off time for UPI mandate confirmation | 30-Apr-2025 at 5PM |
Ather Energy IPO Objectives
The following is how Ather Energy intends to use the IPO’s net proceeds:
- Manufacturing Expansion: A new electric two wheeler manufacturing facility in Maharashtra would be established for Rs 927.2 crore.
- Research and Development: A budget of Rs 750 crore has been allocated for R&D activities in order to enhance product offerings and technological advancements.
- Marketing and Branding: Rs 300 crore has been set aside for marketing campaigns in an effort to raise brand awareness.
- Debt Repayment: A sum of Rs 40 crore has been allocated to pay off outstanding obligations.
The strategic planning of these investments for the fiscal years 2026–2028 aims to strengthen Ather’s position in the market and spur expansion.
Ather Energy IPO Financial Performance
Ather’s financial trajectory presents a mixed picture:
- Income: Due to fewer government subsidies under the FAME-II scheme, the company’s income in FY24 was Rs 1,753.8 crore, a minor decrease from Rs 1,780.9 crore in FY23.
- Net Loss: Due to greater operational difficulties, the net loss grew from Rs 864.5 crore in FY23 to Rs 1,059.7 crore in FY24.
- Net Worth: Ather’s net worth dropped significantly from Rs 545.9 crore in FY24 to Rs 108 crore as of December 2024, raising questions about his financial viability.
In spite of these obstacles, Ather’s revenue has increased dramatically over time, rising 107% between FY22 and FY24.
Ather Energy IPO Grey Market Premium (GMP)
Ather Energy’s IPO is expected to have a Grey Market Premium (GMP) of around Rs 77 per share as of April 28, 2025. Accordingly, Ather Energy’s shares are trading at a premium of Rs 77 above the higher end of the IPO price range, which is set between Rs 304 and Rs 321 per share, on the unofficial market.
Investor Considerations
Strengths:
- The Pioneer Benefit: Well-established brand awareness and expertise in the EV market.
- Technological Edge: A strong emphasis on product innovation and research and development.
- Strategic Alliances: Working together with Hero MotoCorp expands market penetration.
Risks:
- Financial Losses: Financial hazards include diminishing net worth and persistent net losses.
- Market Competition: Market share may be impacted by fierce competition from well-established competitors.
- Policy Dependency: Revenue streams are impacted by reliance on government subsidies, which are subject to policy changes.
Analysts suggest that while Ather’s IPO presents an opportunity to invest in India’s growing EV market, potential investors should weigh the company’s financial challenges and market competition before making investment decisions.
Disclaimer: This blog’s content is intended solely for informational and educational purpose only. Before making any investment decisions, it is recommended that investors consult with a certified financial advisor.