Ather Energy IPO Day 1 Live Updates: The Ather Energy IPO, estimated at ₹2,981 crore, is set to be available for public subscription from April 28 to April 30, with a price band between ₹304 and ₹321. This is the first major public offering for the financial year 2025-26. Ather Energy IPO consists of a fresh issue of equity shares worth ₹2,626 crore along with an offer-for-sale of 1.1 crore equity shares from promoters and other stakeholders.
Last Friday, Ather Energy revealed that it had secured ₹1,340 crore from anchor investors before the public share sale began. The company plans to utilize the funds to establish an electric two-wheeler manufacturing plant in Maharashtra and to reduce its debt. At the highest price point, the Ather Energy IPO values the company at ₹2,981 crore, which leads to a total company valuation of ₹11,956 crore.
This will be the second electric two-wheeler company to seek a public listing, following Ola Electric Mobility, which launched its ₹6,145-crore IPO in August of last year. Ola Electric's offering included a new issue of up to ₹5,500 crore, along with an OFS of up to 8.5 crore equity shares.
In addition to its IPO plans, Ather Energy is also expanding its research and development capabilities. Recently, the company announced the enhancement of its R&D and testing operations at its product testing and validation center. Stay tuned for more updates.
At the upper price band of ₹321, Ather’s EV/Sales ratio of 7.1x (FY24) appears expensive. However, as a pioneer in the E2W segment, the company is in a strong growth phase with robust R&D and new technological platforms. Despite current profitability challenges and valuation concerns, we recommend a "Subscribe" rating for high-risk investors with a long-term outlook.
The new manufacturing facility will involve a total capital outlay of INR 11.27 bn, including land and construction costs. Of this, ₹9.27 bn will be funded through IPO proceeds. The Hosur Factory in Tamil Nadu handles manufacturing, with a yearly production capacity of 420,000 electric vehicles and 379,800 battery packs as of March 2024.
Ather's strategy focuses on four key pillars: vertically integrated design and engineering, a software-driven product ecosystem, premium market positioning, and capital-efficient operations. Ather intends to allocate ₹927.2 crore of the total IPO proceeds to set up an electric two-wheeler manufacturing plant in Maharashtra, allocate ₹40 crore for debt repayment, invest ₹750 crore in research and development, and spend ₹300 crore on marketing initiatives. The utilization of these funds will occur over the fiscal years 2026 to 2028.
Ather Energy is strongly positioned in India’s fast-growing electric two-wheeler market, backed by its early-mover advantage, premium product positioning, and a robust in-house R&D and technology ecosystem. At the upper band of ₹321, the issue is valued at an EV/sales ratio of 8x, based on a 9MFY25 Sales of ₹15,789 million.
Electric two-wheeler manufacturer Ather Energy Ltd announced on Friday that it has raised ₹1,340 crore from anchor investors just days before the commencement of its initial share sale for public offering. A circular posted on BSE's website indicates that the company has allocated 4.17 crore shares to 36 funds at a price of ₹321 each, which represents the upper limit of the price range.
Among the notable anchor investors receiving shares are Custody Bank of Japan, Franklin Templeton, Abu Dhabi Investment Authority, Eastspring Investments, Morgan Stanley Investment Management, and Societe Generale. PSBI Mutual Fund (MF), Aditya Birla Sun Life MF, ICICI Prudential MF, Invesco MF, Aditya Birla Sun Life Insurance, ITI MF, and Union MF are included in the list of anchor investors.
The preliminary share allotment for the Ather Energy IPO is set to be determined on Friday, May 2, and refunds will be initiated by the company on Monday, May 5. Shares will be deposited into the demat accounts of allottees on the same day as the refunds. Ather Energy share price is expected to be listed on the BSE and NSE on Tuesday, May 6.
Ather IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors. The employees have been reserved up to 100,000 equity shares, with a discount of ₹30 per equity share.
Ather Energy IPO GMP today or grey market premium was ₹0, which meant shares were trading at their issue price of ₹321 with no premium or discount in the grey market according to investorgain.com. Considering the activities in the grey market over the past week, today's IPO GMP is trending downwards and is anticipated to decline further. The lowest recorded GMP stands at ₹0.00, while the peak GMP is ₹17, as per insights from investorgain.com experts.
In its RHP, Ather Energy clarified that it will not receive any proceeds from the OFS. "Each Selling Shareholder will be entitled to their respective share of the Offer for Sale proceeds after deducting their portion of the offer expenses and applicable taxes," the RHP states.
The three-day bidding window for the Ather Energy IPO is expected to close on April 30, 2025. After the subscription period ends, the basis of allotment for the Ather Energy IPO shares is tentatively scheduled to be finalized on May 2, 2025. The company's shares are likely to debut on the NSE and BSE on May 6, 2025.
Ather Energy has revealed that it secured ₹1,340.03 crore from anchor investors during the bidding process completed on April 25. From the promoters' group, Tarun Sanjay Mehta and Swapnil Babanlal Jain will be participating in the OFS. Other shareholders involved in the offer-for-sale include Caladium Investment Pte, National Investment and Infrastructure Fund II, and Internet Fund III Pte. Ltd.
The Ather Energy IPO GMP has dropped significantly from ₹20, or 6 percent, which was recorded on Wednesday, April 23, 2025, following the company's announcement of its IPO price band. Ather Energy’s shares are trading steady at around ₹321 each — the upper limit of the IPO price band — in the grey market, suggesting a zero GMP.
Ather Energy Limited, incorporated in 2013, is an Indian electric two-wheeler (E2W) company engaged in the design, development, and in-house assembly of electric scooters, battery packs, charging infrastructure, and supporting software systems. The company operates as a vertically integrated EV manufacturer with a focus on product and technology development.
The company sold 107,983 E2Ws and 109,577 E2Ws in the nine months ended December 31, 2024 and Fiscal Year 2024, respectively. As of December 31, 2024, Ather Energy had 265 experience centres and 233 service centres in India, five experience centres and four service centres in Nepal, and ten experience centres and one service centre in Sri Lanka.
The company's product ecosystem includes Ather Grid, a public fast-charging network for two-wheelers, and Atherstack, a proprietary software platform with 64 connected features as of July 2024. Ather Energy expects to continue improving its EBITDA margins, buoyed by the rising volumes of its new scooter model, Ritza, according to Co-founder and CEO Tarun Mehta. "With Ritza contributing to a large part of the company’s sales, the company now has the ability to add more retail stores," Mehta said. The company is betting on expanding its retail footprint alongside growing its product portfolio to strengthen its path to profitability.
