The much-awaited Ather Energy IPO is finally here! One of India’s top electric two-wheeler makers, Ather Energy, is all set to hit the markets with its initial public offering (IPO) opening for subscription on April 28, 2025, and closing on April 30, 2025. Investors, EV enthusiasts, and market experts are closely watching this move as Ather steps into the next big phase of its growth journey.
Let’s break down everything you need to know about this exciting IPO.
Ather Energy IPO Details
- IPO Opening Date: April 28, 2025
- IPO Closing Date: April 30, 2025
- Issue Size: Around ₹2,981 crore (reduced from ₹3,100 crore)
- Fresh Issue: ₹2,626 crore (approx. 8.18 crore shares)
- Offer for Sale (OFS): ₹355 crore (about 1.1 crore shares)
- Price Band: ₹304 to ₹321 per equity share (face value Re 1)
- Minimum Lot Size: 46 shares (and in multiples of 46 thereafter)
- Post-money Valuation: Roughly ₹12,800 crore
- Listing Date: Expected on May 5, 2025
The IPO is a 100% book-built issue, with allocations of 75% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for Retail Investors.
Interestingly, anchor investors like SBI Mutual Fund, Abu Dhabi Investment Authority, Franklin Templeton, ICICI Prudential, and Morgan Stanley have already poured in ₹1,340 crore at the upper end of the price band (₹321 per share), which signals strong early interest.
How Will Ather Use the IPO Money?
The fresh funds raised through the Ather Energy IPO will be used for:
- Setting up a brand-new electric two-wheeler manufacturing facility in Maharashtra
- Research and development (R&D) activities
- Repayment of debts
- Marketing and brand-building
- General corporate expenses
With the electric vehicle (EV) market booming in India, Ather is gearing up to strengthen its footprint aggressively.
Ather Energy at a Glance
Ather Energy, founded in 2013, is known for its stylish, tech-savvy electric scooters like the 450X and 450 Plus. They have also built a strong EV ecosystem with their Ather Grid fast-charging network. Backed by giants like Hero MotoCorp and Tiger Global, Ather holds about 10.6–12.2% of the EV two-wheeler market share as of FY24.
Compared to Ola Electric’s budget-first strategy, Ather is firmly positioned as a premium brand, focused on cutting-edge technology and customer experience.
Gold Price Today on 27th April 2025: Rates Hold Steady Across India
Risks to Keep in Mind Before Investing
While the buzz around the Ather Energy IPO is huge, it’s important to note the risks too:
- Consistent Losses: Ather has reported losses year after year — ₹344 crore in FY22, ₹864 crore in FY23, ₹1,059 crore in FY24, and ₹578 crore already in the first nine months of FY25.
- Negative Cash Flows: Cash from operations remains negative, raising concerns about sustainability.
- Strong Competition: Ather competes with big names like Ola Electric, TVS Motor, Bajaj Auto, and Hero MotoCorp.
- Limited Market Reach: A large chunk of Ather’s sales are concentrated in South India.
- Customer Complaints: There have been reports of quality-related issues and complaints.
- Low Factory Utilization: Current utilization is about 39–41%, which impacts cost efficiency.
- High R&D Spend: Heavy investments in R&D don’t always guarantee commercially successful outcomes.
- Supply Chain Risks: Heavy reliance on suppliers, especially for lithium-ion cells, is a vulnerability.
In short, while Ather has huge potential, investors need to be mindful of these challenges.
How Does Ather Stack Up Against Rivals?
| Aspect | Ather Energy | Ola Electric | TVS Motor | Bajaj Auto |
|---|---|---|---|---|
| Market Share (FY24) | ~10.6–12.2% | ~42.4% | Strong ICE & EV presence | Strong ICE, growing EV |
| Sales Volume (2024) | ~1 lakh units | ~3 lakh units | Diversified portfolio | Gradual EV expansion |
| Revenue (FY24) | ₹1,754 crore | ₹5,010 crore | ₹39,144 crore (total) | ₹44,870 crore (total) |
| Profitability | Loss-making | Profitable | Profitable | Profitable |
| Product Focus | Premium, tech-driven | Budget-friendly | Diversified | Traditional with EV focus |
Ather is clearly taking a different route compared to Ola’s mass-market strategy. With its focus on premium electric scooters and advanced software (like Atherstack with 64 connected features), Ather is targeting a different customer base altogether.
Final Thoughts
The Ather Energy IPO offers a unique opportunity for investors to participate in India’s fast-evolving electric vehicle landscape. With a premium brand, proprietary technology, and ambitious expansion plans, Ather has a lot going for it.
However, the company’s persistent losses, fierce competition, and operational challenges cannot be ignored. If you’re looking to invest, it would be wise to weigh the growth potential against the risks carefully.
That said, the strong response from anchor investors and the overall excitement in the EV market could make Ather’s IPO an interesting bet for those with a slightly higher risk appetite.
Are you planning to invest in the Ather Energy IPO? 🚀
Let’s talk about it in the comments!
