Bengaluru-based electric vehicle manufacturer Ather Energy is all set to tap the capital markets with its maiden mainboard initial public offering (IPO). Backed by marquee investors like Tiger Global and Hero MotoCorp, the company has set a price band of ₹304–321 per share for its IPO, which will open on April 28 and close on April 30. Anchor investors bidding will begin on April 25, offering early insight into institutional demand.

IPO Size Trimmed, Focus Remains Strong

Ather’s IPO size has been trimmed from the initially planned ₹3,100 crore to ₹2,626 crore, as per the final red herring prospectus. The issue will comprise a fresh issue of equity shares aggregating to ₹2,626 crore and an Offer for Sale (OFS) of 1.1 crore shares by existing stakeholders, including promoters Tarun Sanjay and Swapnil Babanla, and other corporate entities.

Despite reducing the fundraising target, Ather is expected to command a post-money valuation of ₹12,800 crore, down from an earlier expectation of ₹14,000 crore.

Utilisation of IPO Proceeds

The proceeds from the IPO will be used for a wide range of strategic initiatives:

• Funding a new manufacturing facility in Maharashtra, to ramp up production capacity.

• Research and Development (R&D) to expand the technological edge in electric two-wheelers.

• Repayment or prepayment of borrowings.

• Marketing and promotion for greater brand visibility and reach.

• General corporate purposes to ensure smooth business operations.

Hero MotoCorp Retains Stake

Hero MotoCorp, which holds around 40% stake in Ather, has confirmed that it will not sell any shares in the public offer. This move reinforces confidence in Ather’s long-term potential and market position in the electric vehicle space.

Product Line and Business Overview

Founded in Bengaluru, Ather Energy is known for its design, development, in-house assembly, and production of electric two-wheelers, battery packs, charging infrastructure, and software systems. It offers:

• Ather 450 Series – High-performance electric scooters.

• Ather Rizta – A family-oriented EV scooter launched in 2024, which has already seen a significant boost in sales.

Financial Performance Compared to Ola Electric

Let’s take a look at Ather’s recent revenue and EBITDA performance and how it stacks up against rival Ola Electric:

Ather’s financials show a narrowing of losses to ₹578 crore in the first nine months of FY25 from ₹776 crore in the same period last year, largely driven by increased sales of its Ather Rizta scooter.

IPO Timeline and Listing

• Anchor Bidding Date: April 25, 2025

• IPO Open Date: April 28, 2025

• IPO Close Date: April 30, 2025

• Allotment Finalisation: May 2, 2025

• Tentative Listing Date: May 6, 2025

• Exchanges: BSE and NSE

Lead Managers and Registrar

The IPO is being managed by top-tier firms:

• Book Running Lead Managers (BRLMs):

  • Axis Capital

  • HSBC Securities & Capital Markets

  • JM Financial

  • Nomura Financial Advisory and Securities (India)

• Registrar to the IPO:

  • Link Intime India Pvt Ltd

Ather’s Position in the EV Landscape

Ather Energy will become the second pure-play Indian EV manufacturer to list, following the Ola Electric IPO in 2024. This move positions Ather as a long-term player in India’s rapidly evolving electric mobility ecosystem, leveraging its tech-first approach and integrated infrastructure to stand out.

With EV adoption growing and government incentives aligning, Ather is well-placed to benefit from the macro push toward cleaner mobility. The IPO provides retail and institutional investors an early chance to be part of India’s transition to sustainable transport solutions.

Conclusion

The upcoming Ather Energy IPO marks a crucial turning point for India’s electric mobility landscape. Backed by prominent investors and armed with a promising product portfolio, Ather is setting itself up for future growth and scalability. The company’s prudent trimming of IPO size, clear focus on capacity expansion, and improved financials provide strong signals of its commitment to long-term value creation.

As investor sentiment around EVs remains strong and with Ather’s IPO attracting attention, all eyes will be on how this public debut plays out. For now, it offers a compelling opportunity for those looking to ride India’s electric revolution.

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