Ather Energy, the Bengaluru-based electric vehicle (EV) manufacturer, is poised to make its debut on the stock market with its initial public offering (IPO) scheduled for April 28-30, 2025. This marks a significant moment as it will be the first mainboard IPO of the financial year 2025-26, following a nearly two-month lull in the primary market. The company aims to raise approximately ₹2,626 crore through a fresh equity sale, alongside an offer for sale (OFS) of 1.1 crore shares, significantly reduced from the previously planned ₹3,100 crore and 2.2 crore shares, respectively.
Founded in 2013 by Tarun Sanjay Mehta and Swapnil Babanlal Jain, Ather Energy has been at the forefront of India's electric two-wheeler market. The IPO's proceeds will primarily fund the establishment of a new electric two-wheeler factory in Maharashtra, repayment of debts, and investments in research and development, marketing initiatives, and general corporate purposes. The company is also looking to bolster its production capabilities amid growing competition in the EV sector.
The upcoming IPO comes after a period of stagnation in the Indian IPO market, which saw its last mainboard listing on February 24, 2025. Factors such as market volatility, weak investor sentiment, and unfavorable valuations have led many companies to delay their public offerings. Ather Energy’s move to launch its IPO is seen as a test of investor appetite in a recovering market.
According to a report by CRISIL, India is the largest global market for motorized two-wheelers, with approximately 18.4 million units sold in fiscal year 2024, of which 16% were exports. Ather Energy has established itself as a significant player in this space, selling 109,577 electric two-wheelers in FY24, making it the third-largest player by volume in the market. The company holds a market share of 11.5% in the electric two-wheeler segment.
Despite its growth trajectory, Ather Energy has faced challenges, including financial losses since its inception. In FY24, the company recorded a loss before tax of ₹1,059.7 crore, an increase from ₹864.5 crore in FY23. Revenue also saw a slight decline, totaling ₹1,753.8 crore compared to ₹1,780.9 crore the previous year. These figures highlight the ongoing struggles within the competitive landscape of electric vehicles, where many players are vying for market share amid fluctuating consumer demand and regulatory pressures.
As Ather prepares for its IPO, it has garnered backing from notable investors, including Hero MotoCorp, which holds a 39.7% stake in the company. Other investors include the National Investment and Infrastructure Fund, Tiger Global, and Caladium Investment. The participation of these investors underscores the confidence in Ather’s business model and its potential for future growth.
The IPO will open for subscription on April 28, 2025, and close on April 30, 2025. The anchor investor bidding date is set for April 25, 2025. While the price band for the IPO has not yet been announced, it is expected to be revealed shortly before the offering opens. Ather Energy’s decision to reduce the size of its IPO reflects the current economic climate and the need for prudent financial planning in a volatile market.
In recent months, the electric two-wheeler market has experienced a surge in sales, with Ather reporting a 20% year-on-year increase to 130,913 units sold in FY25. This growth comes even as the wider industry expanded by 58%, indicating Ather’s ability to capture consumer interest despite challenges faced by competitors like Ola Electric, which has seen a decline in sales.
As the IPO approaches, market analysts are keenly observing how Ather Energy will navigate the complexities of public offerings in a fluctuating economic environment. The company's performance in the coming months will be crucial in determining its long-term viability and ability to compete against larger two-wheeler manufacturers.
Ather Energy's journey from a college project to a significant player in the electric vehicle market exemplifies the potential for innovation in India’s automotive sector. With a focus on sustainability and advanced technology, Ather aims to redefine the future of transportation in the country.
In summary, Ather Energy's upcoming IPO is not just a financial milestone for the company but also a critical moment for the Indian electric vehicle industry, signaling a potential recovery in the IPO market after a challenging period. As investors prepare to engage with this offering, the outcomes will undoubtedly shape the landscape for future IPOs in the sector.
