Ather Energy’s Upcoming IPO at ₹2,980.76 Cr: Key Insights, Financials & SWOT

Electric vehicles (EVs) are gaining serious momentum in India, and the IPO space is heating up once again—this time with Ather Energy taking the spotlight. Known for its sleek electric scooters and strong focus on technology, Ather is poised to become the second pure-play Indian EV manufacturer to go public, following Ola Electric’s market debut last year.

The IPO comprises a fresh issue of ₹2,626 crore along with an offer for sale (OFS) of up to 1.1 crore shares, which is expected to fetch around ₹354.76 crore at the upper end of the price band. Together, this brings the total issue size to approximately ₹2,980.76 crore, marking a notable reduction from the company’s earlier plan to raise ₹4,000 crore. Source: Moneycontrol

Ather Energy IPO Details

Ather Energy has officially set a price band of ₹304 to ₹321 per share for its IPO. The offer will be open for subscription from April 28 to April 30, with the anchor book opening earlier on April 25. The basis of allotment will be finalized on May 2, followed by refunds and credit of equity shares by May 5. The stock is set to be listed on the Indian stock exchanges on May 6.

In the Ather Energy IPO, at least 75% of the shares are allocated for qualified institutional buyers (QIBs), while up to 15% are set aside for non-institutional investors (NIIs). Retail investors will have access to no more than 10% of the total offer. Additionally, up to 1,00,000 equity shares have been reserved for employees, who will also benefit from a discount of ₹30 per share. Source: Livemint

Offer Price	₹304 to ₹321 per share
Face Value	₹1 per share
Opening Date	28 April 2025
Closing Date	30 March 2025
Total Issue Size (in Shares)	9,28.58, 599
Total Issue Size (in ₹)	₹ 2980.76 Cr
Issue Type	Book Built Issue IPO
Lot Size	46 Shares
Listing at	BSE, NSE

Company Overview

Ather Energy, headquartered in Bengaluru, is an Indian electric two-wheeler manufacturer established in 2013. It designs and produces high-performance electric scooters like the 450 Apex, 450X, 450S, and the family-oriented Rizta.  

Ather has also established Ather Grid, a widespread EV charging infrastructure across India. Committed to sustainability, Ather aims to revolutionize urban commuting through innovative and eco-friendly mobility solutions, evident in their product development and manufacturing practices.

Company Performance and Financials

For the nine months ending December 2024, the company posted:

• Revenue of ₹1,578.90 crore, up from ₹1,230.40 crore in the same period a year ago.
• A net loss of ₹577.90 crore, significantly down from the previous year’s loss of ₹776.40 crore.

Source: Moneycontrol

These numbers show that while Ather is still in the loss-making phase, it has been able to grow revenue and narrow losses, both positive signs as the company works toward profitability.

SWOT Analysis of Ather Energy

STRENGTHS	WEAKNESSES
High-performance, feature-rich electric scooters with a focus on technology and design. Perceived as a premium and aspirational EV brand in India. Provides a crucial advantage and reduces range anxiety for owners. In-house R&D and manufacturing allow greater control over quality and innovation.	Relatively high price point Limits affordability for a large segment of the Indian market. While expanding, their presence is still concentrated in major urban centers. Dependence on imported components can impact costs and supply chain stability. Like many early-stage EV companies, achieving consistent profitability can be a hurdle.
OPPORTUNITIES	THREATS
Growing competition from both established two-wheeler manufacturers and emerging EV startups. Fluctuations in raw material prices can significantly affect production costs and pricing strategies. Uncertainties in government policies and subsidies can influence consumer demand and operational planning.	Growing competition from both established two-wheeler manufacturers and emerging EV startups. Fluctuations in raw material prices can significantly affect production costs and pricing strategies.  Uncertainties in government policies and subsidies can influence consumer demand and operational planning.

Key Managers of the IPO

To ensure a smooth and credible public issue, Ather Energy has enlisted the services of some of the top names in investment banking. The book running lead managers for this IPO include:

• Axis Capital
• HSBC Securities and Capital Markets (India)
• JM Financial
• Nomura Financial Advisory and Securities (India)

Valuation Cuts and Downsizing

When Ather Energy filed its draft red herring prospectus (DRHP) back in September 2024, the company was aiming for a $2.5 billion valuation. Since then, due to changing market conditions and investor sentiment, the figure has been cut down to around $2.4 billion, reflecting a post-issue valuation of ₹11,956 crore.

Some market analysts see this as a red flag, as the last-minute downsizing and multiple valuation trims may signal a rush to list the company. However, it remains to be seen whether investors share this sentiment or look past it for the long-term EV growth story. Source: Moneycontrol

Why Ather’s IPO Stands Out

Ather’s IPO is significant because 2025 has been slow for IPOs so far. After a blockbuster 2024 where Indian companies raised ₹1.6 lakh crore through public issues, only nine companies have launched IPOs in 2025, raising just ₹15,722 crore, according to Prime Database.

As per market analysts, while secondary markets are now showing signs of a rally and foreign institutional investors (FIIs) are returning, most companies are taking a cautious approach. They prefer to wait and watch how Ather’s issue performs before launching their offerings.

The Second Major EV IPO in India

When Ather lists on the stock exchanges, it will follow in the footsteps of Ola Electric, which went public last year. This makes Ather only the second pure-play electric vehicle company in India to offer shares to the public—a big milestone for India’s green mobility push.

Ather has made a name for itself in the urban EV space with scooters like the Ather 450X, which combines performance with connectivity features like onboard navigation, over-the-air updates, and a mobile app for real-time tracking. The company is also focusing on expanding its charging infrastructure, which is crucial for the mass adoption of electric vehicles (EVs).

What Investors Should Watch Out For

Before you decide whether to invest, here are a few important points to keep in mind:

1. Valuation Sensitivity

The multiple valuation cuts could mean that the company is under pressure to list. While that’s not always a negative, it does warrant caution.

2. EV Market Potential

India’s EV market is poised for exponential growth, and Ather is one of the few players offering a strong product and expanding presence. Investors with a long-term horizon may find this as an entry point.

3. Profitability Timeline

Like many startups, Ather is still loss-making. Potential investors must understand when and how the company plans to achieve profitability.

4. Market Response

How Ather’s IPO performs could set the tone for future listings in 2025. A strong response may attract more companies to the market, while a weak one could prompt others to delay.

Final Thoughts

Ather Energy’s IPO comes at an interesting time. On the one hand, it represents India’s growing shift toward electric vehicles, offering retail investors a chance to ride that wave. On the other hand, the valuation trims and IPO downsizing suggest some caution is warranted.

It is always best to do your own research or speak to a certified investment advisor before making any final decisions.

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