A leading player in India’s electric vehicle (EV) market, Ather Energy, is set to launch its Initial Public Offering (IPO) after receiving approval from the Securities and Exchange Board of India (SEBI). This clears the EV two-wheeler maker to raise ₹3,100 crore from the public in 2025.
The Ather Energy IPO marks a significant milestone for the company as it aims to become the second electric two-wheeler manufacturer to list on the stock exchanges, following Ola Electric. With a target valuation of approximately $2.4 billion, Ather Energy is gearing up to fuel its electric mobility journey through this IPO.
Ather Energy IPO Details
Here are some key details of the upcoming IPO of Ather Energy:
| Ather Energy IPO Detail | To Be Announced |
| Listing Date | To Be Announced |
| Fresh Issuance of Shares | ₹3,100 Crore |
| Offer-for-Sale | ₹2.2 Crore |
| Pre-IPO Placement | ₹620 Crore |
| Approximate Valuation | $2.4 Billion |
| Retail Quota | Not more than 10% |
| QIB Quota | Not more than 75% |
| NII Quota | Not more than 15% |
Objectives of the Ather Energy IPO
Ather Energy plans to utilise the funds raised from the latest IPO for several key objectives:
- Manufacturing Capacity Expansion: The company aims to enhance the production capacity to meet the rising demand for electric scooters in India.
- Research and Development (R&D): Ather Energy intends to utilise the proceeds from its IPO to fund research, innovation, and development for new products.
- Charging Infrastructure Expansion: Ather Grid is crucial for the business model of Ather Energy. It plans to enhance this network in more areas in India, making EV adoption relatively easier for customers.
About Ather Energy
Ather Energy was founded by Tarun Mehta and Swapnil Jain in 2013. The company has fully integrated operations encompassing the design and development of E2Ws, battery packs, charging infrastructure, associated software, and accessories, focusing on technology and product innovations.
Ather Energy is an EV company that designs all its products in India. The electric two-wheeler maker currently has a portfolio of two product lines, the Ather Rizta and Ather 450, comprising a total of seven variants.
Financials of Ather Energy
Ather Energy has limited options and must aggressively drive sales growth to recover its capital expenditure since inception and move towards profitability. The company intends to allocate ₹750 crore, or 25% of the fresh issue portion from its ₹3,100 crore IPO, to research and development (R&D).
In addition, ₹927 crore will be invested in setting up a new manufacturing plant in Maharashtra, which is expected to multiply its annual production capacity to 900,000 units. In 2024, Ather sold over 1,25,000 units, indicating that its current capacity of 400,000 units provides room for growth.
To justify these investments, investors and shareholders expect monthly sales to increase two to three times the 2024 figures, ensuring returns on capital expenditure.
Offer for Sale (OFS) Details
The offer for sale for Ather Energy IPO includes up to 22,000,766 equity shares, each with a face value of ₹1. With this OFS, co-founders Tarun Mehta and Swapnil Jain are discharging 10 lakh shares each.
Corporate shareholders participating in the OFS include Caladium Investment Pte Ltd, 3State Ventures Pte. Ltd., National Investment and Infrastructure Fund II, IITMS Rural Technology and Business Incubator, IITM Incubation Cell. Among them, Mehta, the CEO, will sell up to 1 million shares.
Hero MotoCorp, which holds a 37.2% stake in Ather, will not dispose of any shares in the IPO. Alongside Mehta, co-founder Swapnil Jain will also partially offload his stake. Other major investors, such as Tiger Global, GIC, and Binny Bansal’s Three State Ventures, will also sell shares through the OFS window.
Risks and Challenges
While Ather Energy also has huge growth potential, there are some risks that prospective investors must take into consideration:
- Competition: India’s electric vehicle industry is growing more competitive with new companies entering the fray, and other companies like Bajaj Chetak and Ola Electric are intensifying their efforts. Ather must keep innovating and increasing its market share if it wants to lead the market.
- Regulatory Risks: Though the government is at present offering significant support to the electric vehicle sector, any shift in incentives or policies can affect the growth possibility of Ather Energy.
- Profitability: Similar to several other players in the EV business, the company is not profitable yet, and it can take years for the firm to turn profitable. Steep capital expenses and operating costs might continue to affect the firm’s bottom line shortly.
IPO Comparison: Ather Energy vs. Ola Electric
Ola Electric’s IPO comprised a fresh issue of ₹5,500 crore and an offer for sale of ₹645.56 crore. The price range was set between ₹72 and ₹76 per share, with shares listed on the BSE and NSE on August 9, 2024. Investors had to apply for a minimum lot size of 195 shares, requiring a minimum investment of ₹14,820.
The IPO saw strong demand, being subscribed 4.45 times at the time of its debut. As of 24th February 2025, Ola Electric Mobility is trading at ₹59.85, 19.87% below its initial listed price on the stock exchange.
In contrast, Ather Energy’s IPO differs in scale and objectives, primarily focusing on expanding manufacturing capacity, research and development, and charging infrastructure. While Ola Electric aimed to raise ₹6,145.56 crore, Ather Energy is targeting ₹3,100 crore through a fresh issue. Despite the differences, both IPOs reflect the increasing investor interest in India’s electric vehicle sector.
Impact of the Ather Energy IPO
Ather Energy’s IPO is expected to have a significant impact on the Indian EV market. The IPO will provide Ather with the capital to expand its operations and develop new products. It will also raise awareness of the EV market and encourage other companies to enter the space. Overall, Ather Energy’s IPO is a positive development for the Indian EV market and is expected to accelerate the adoption of electric vehicles in India.
Want to Invest in Ather Energy IPO?
Experience a seamless application process on Torus Digital. Open your FREE demat account today and apply for the upcoming IPOs at your convenience.
