By Business Connect Magazine
Bengaluru-based electric vehicle (EV) giant Ather Energy is gearing up to make waves in India’s capital markets with its Initial Public Offering (IPO), set to open for subscription on April 28, 2025. The company has fixed a price band of ₹304 to ₹321 per share, aiming to raise up to ₹2,981 crore at a post-issue valuation of approximately ₹11,956 crore. This marks the first mainboard IPO of the 2025-26 financial year and positions Ather as the second pure-play EV manufacturer to go public in India, following Ola Electric.
Key IPO Details
Issue Structure: The IPO comprises a fresh issue of ₹2,626 crore and an Offer for Sale (OFS) of 1.1 crore equity shares (valued at ~₹354.76 crore at the upper price band) by promoters Tarun Mehta, Swapnil Jain, and investors like GIC, NIIF II, and others. Hero MotoCorp, holding a ~40% stake, will not sell shares.
Subscription Dates: Open from April 28 to April 30, 2025, with anchor investor bidding on April 25. Share allotment is expected by May 2, with listing on BSE and NSE on May 6.
Lot Size: Investors can bid for a minimum of 46 shares and in multiples thereafter. Retail investors are allocated 10% of the issue, with 75% for qualified institutional buyers and 15% for non-institutional investors. Eligible employees get a ₹30/share discount on up to 1 lakh shares.
Fund Utilization: Proceeds will fuel expansion, including ₹927 crore for a new EV factory in Maharashtra, ₹378 crore for debt repayment, ₹750 crore for R&D, and ₹300 crore for marketing over three years.
Ather’s Market Position
Founded in 2013 by IIT Madras graduates Tarun Mehta and Swapnil Jain, Ather Energy is a leader in India’s electric two-wheeler (E2W) market, holding an 11.5% market share in FY24 with 1,09,577 units sold. Its portfolio includes the performance-focused Ather 450 and family-oriented Ather Rizta, supported by innovations like the Ather Grid charging network and Atherstack software with 64 connected features. The company’s Hosur factory boasts a capacity of 420,000 E2Ws annually, and it holds 303 trademarks, 201 designs, and 45 patents as of February 2025.
Despite a narrowed loss of ₹578 crore in the nine months ending December 2024 (down from ₹776 crore) and a 28% revenue rise driven by Rizta sales, Ather faces challenges like competition and subsidy uncertainties.
Why It Matters
Ather’s IPO, backed by Hero MotoCorp and Tiger Global, comes at a time of global market volatility, with the company slashing its valuation by 44% to $1.4 billion from an initial $2.5 billion target. Analysts note that the reduced IPO size (from ₹3,100 crore) and valuation cuts may signal caution, but Ather’s focus on innovation, in-house R&D, and premium positioning makes it a compelling bet in India’s booming EV sector.
Final Thoughts
As Ather Energy charges toward its public debut, it offers investors a chance to tap into India’s green mobility revolution. With strong fundamentals and ambitious growth plans, the IPO is a pivotal moment for the EV pioneer. Keep an eye on subscription trends and market reception as Ather aims to accelerate India’s electric future!
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