by Ankita Lodh on 24 April 2025, 4 minutes min read
As the electric vehicle (EV) revolution accelerates in India, Ather Energy, a leading electric two-wheeler manufacturer, is set to make a significant mark in the capital markets with its upcoming IPO. Scheduled to open for subscription from April 28 to April 30, 2025, Ather Energy’s initial public offering is generating a lot of buzz among investors.
This blog talks about the latest details about the Ather Energy IPO, including its offer structure, financials, and what investors can expect.
Also read: What is IPO in Stock Market: Your Guide to Participating in Initial Public Offerings in India
Founded in 2013, Ather Energy is a Bengaluru-based electric vehicle company specialising in the design, development, and manufacture of electric two-wheelers, battery packs, and charging infrastructure. The company’s product portfolio currently includes popular models like the Ather 450 and Ather Rizta, with seven variants in total.
Source: Ather Energy
As of the fiscal year ending March 2024, Ather secures around 11.5% of the Indian electric two-wheeler market, ranking third behind Ola Electric and TVS Motor Company.
Ather Energy has been backed by prominent investors such as Tiger Global and Hero MotoCorp, which also holds a significant stake in the company. The company has been at the forefront of India’s EV ecosystem, along with manufacturing vehicles, developing software, and creating infrastructure and accessories that complement its product offerings.
A combination of an offer for sale (OFS) and a new issuance, Ather Energy’s IPO aims to raise around 2,980.76 crore. 8.18 crore equity shares valued at ₹2,626 crore are part of the new issuance, whilst 1.1 crore shares totalling ₹354.76 crore are part of the OFS.
| IPO Date | April 28, 2025, to April 30, 2025 |
| Listing Date | Tue, May 6, 2025 (Tentative) |
| Face Value | ₹1 per share |
| Issue Price Band | ₹304 to ₹321 per share |
| Lot Size | 46 Shares |
| Total Issue Size | 9,28,58,599 shares(aggregating up to ₹2,980.76 Cr) |
| Fresh Issue | 8,18,06,853 shares(aggregating up to ₹2,626.00 Cr) |
| Offer for Sale | 1,10,51,746 shares of ₹1(aggregating up to ₹354.76 Cr) |
| Employee Discount | 30.00 |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 29,06,43,469 shares |
| Share Holding Post Issue | 37,24,50,322 shares |
The main objects of the IPO funds are to establish a new electric two-wheeler manufacturing facility in Maharashtra, as well as to fund marketing campaigns, R&D, and debt repayment. The new plant will receive ₹927.2 crore, while R&D will receive ₹750 crore, marketing will receive ₹300 crore, and debt reduction will receive ₹40 crore.
Ather Energy has filed its Red Herring Prospectus (RHP) with SEBI, marking the formal launch of its IPO. This filing is a critical step in the IPO process, providing detailed disclosures about the company’s financials, business model, risks, and offer structure. The SEBI approval confirms that the company has met regulatory requirements to proceed with the public offering.
The Ather RHP highlights that the promoters, including founders Tarun Mehta and Swapnil Jain, along with institutional investors like Tiger Global and NIIF II, will participate in the OFS. The founders are selling a combined total of 19.6 lakh shares, which is expected to yield significant returns given their low acquisition cost.
For further details, read the full Ather RHP.
Ahead of the IPO subscription opening on April 28, 2025, the Ather Energy IPO GMP today is trading at a positive premium of around 3.4%.
The unofficial market price suggests that investors expect the shares to list at a premium over the issue price, reflecting confidence in the company’s growth prospects and the broader EV market potential.
Ather Energy’s financials reveal a company in growth mode, with increasing revenues but continuing losses as it invests heavily in expansion and innovation:
| Period Ended | 31 Dec 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets (₹ Cr) | 2,172 | 1,913.5 | 1,976.8 | 818.6 |
| Revenue (₹ Cr) | 1,617.4 | 1,789.1 | 1,801.8 | 413.8 |
| Profit After Tax (₹ Cr) | -577.9 | -1,059.7 | -864.5 | -344.1 |
| Net Worth (₹ Cr) | 108 | 545.9 | 613.7 | 224.9 |
| Reserves and Surplus (₹ Cr) | 3,346.6 | 545.1 | 613.1 | 224.2 |
| Total Borrowing (₹ Cr) | 1,121.6 | 314.9 | 485.2 | 298.4 |
While the company is currently reporting losses, these are typical for a rapidly scaling startup investing in infrastructure and R&D. The increase in assets and reserves indicates strengthening financial health and capacity for growth.
This allocation ensures a broad base of investors can participate, with a significant portion reserved for institutional investors to provide stability.
Also read: Upcoming IPOs 2025: Top 5 Upcoming IPOs List to Look Out For
As the first major mainboard IPO of FY 2025-26, it offers investors a chance to participate in the growing EV sector in India. With a strong backing, strategic use of IPO proceeds, and a promising product lineup, Ather Energy is ready to accelerate its journey in the EV market.
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