Ather Energy's IPO aims to raise ₹2,980.76 crores, including a fresh issue of ₹2,626.00 crores. The company plans to expand its manufacturing, repay borrowings, invest in R&D, and enhance marketing efforts to strengthen its position in India's E2W market.
The Ather Energy Ltd has filed a Red Herring Prospectus (RHP) with SEBI to raise capital via both a fresh issue and an offer for sale (OFS). Ather Energy IPO is a bookbuilding of ₹2,980.76 crores. The issue is a combination of fresh issue of 8.18 crore shares aggregating to ₹2,626.00 crores and offer for sale of 1.11 crore shares aggregating to ₹354.76 crores.
Open Date: April 28, 2025
Close Date: April 30, 2025
Minimum lot size is 46 shares with a price band of ₹304 to ₹321 per share. The minimum investment for retail investors is ₹14,766. The allotment of shares is expected by May 02, 2025, and the listing is scheduled for May 06, 2025.
The Ather Energy IPO allocated shares as follows: at least 75% of the net offer is for Qualified Institutional Buyers (QIBs), up to 10% for Retail Investors, and up to 15% for Non-Institutional Investors (NIIs/HNIs).
The promoters of Ather Energy are Tarun Sanjay Mehta, Swapnil Babanlal Jain, and Hero MotoCorp Ltd (HMCL). Pre-issue, they hold 52.67% of the company’s shares. Post-issue, their shareholding will decrease to 42.09%.
The listing of Ather Energy will be the 1st mainboard IPO this financial year and is likely to attract the attention of investors in this corrected market condition.
Ather Energy Limited, established in 2013, is an Indian electric two-wheeler manufacturer with in-house capabilities across design, development, and assembly of EVs, battery packs, charging infrastructure, and software systems. Operating from its Hosur facility in Tamil Nadu with an annual capacity of 4.2 lakh vehicles and 3.79 lakh battery packs (as of March 2024), the company sold 107,983 E2Ws in the nine months ended December 31, 2024, and 109,577 in FY24. Its retail and service network spans 265 experience centres and 233 service centres in India, along with operations in Nepal and Sri Lanka.
Ather Energy, founded in 2013, has solidified its position as India's fourth-largest electric two-wheeler (E2W) manufacturer, trailing Ola Electric, TVS Motor, and Bajaj Auto.
In fiscal 2024, Ather's sales surpassed 100,000 units, marking a 39.3% year-on-year growth. Between April and December 2025, the company sold 90,351 units, a 25% increase from the 71,973 units sold during the same period in the previous fiscal year. Notably, in March 2025, Ather sold 15,446 units, securing the fourth position in monthly sales rankings. Ather's market share rose to 16% in April 2025, up from 12% in March.
The company's innovative offerings, such as the 'Rizta' scooter and smart helmets, coupled with its extensive Ather Grid charging network, have contributed to its strong market presence. With an upcoming IPO aimed at funding a new manufacturing facility in Maharashtra, Ather is poised for further growth in India's rapidly expanding E2W sector.
The proceeds from the Ather Energy IPO will be primarily used to fund the company’s expansion and strategic initiatives.
| Name of Company | Closing price as on March 28, 2025 ( in ₹) | Revenue from operations for Fiscal 2024 (in ₹ crore) | EPS | P/E |
| Ather Energy | NA | 1753.8 | (47)* | NA |
| Hero MotoCorp | 3,723 | 37,788.6 | 187 | 20 |
| Bajaj Auto | 7,879 | 44,870.4 | 273 | 29 |
| Ola Electric Mobility | 53 | 5,009.8 | (4) | NA |
| TVS Motors | 2,420 | 39,144.7 | 36 | 68 |
| Eicher Motors | 5,348 | 16,535.8 | 146 | 37 |
Source: Ather Energy RHP, Page No. 200
Ather Energy reported revenue from operations of ₹1,753.8 crore in FY24, positioning itself among the emerging players in the electric two-wheeler (E2W) segment. However, the company posted a negative EPS of ₹(47), indicating net losses.
In comparison with listed incumbents like Hero MotoCorp (EPS ₹187, P/E 20) and Bajaj Auto (EPS ₹273, P/E 29), Ather still lags in profitability. Even Ola Electric, another startup, shows better earnings performance with a smaller negative EPS of ₹(4).
In conclusion, Ather Energy's IPO offers potential for growth in the expanding electric two-wheeler market, with strong sales and strategic expansion plans. However, its negative EPS and lack of profitability compared to established peers like Hero MotoCorp and Bajaj Auto may be a concern for investors. Success will depend on its ability to scale efficiently and capitalise on market opportunities.
Disclaimer: The article is for informational purposes only and not investment advice.
For android only