Ather Energy Ignites Market Buzz with Rs 2,626 Crore IPO Launch from April 28 to 30

• Ather Energy, the Bengaluru-based electric two-wheeler maker, has officially filed its Red Herring Prospectus (RHP) with SEBI, marking its entry into the public markets with a high-profile Initial Public Offering (IPO).

• The IPO comprises a fresh equity issue worth Rs 2,626 crore alongside an Offer For Sale (OFS) of approximately 1.1 crore shares by existing shareholders, including founders and early investors.

• The public subscription window will be open for three days, from April 28 to April 30, 2025, with anchor investors’ bidding starting on April 25. The shares will be listed on both NSE and BSE, with NSE as the designated stock exchange.

• This IPO is a significant milestone for Ather Energy, which has been a pioneer in India’s electric scooter segment since its inception, offering premium models like the Ather 450X and the recently launched Ather Rizta.

• The fresh capital raised will be primarily used to fund the expansion of manufacturing facilities, including a new electric two-wheeler factory, ramp up research and development efforts, and repay existing debt. Additional funds will support marketing initiatives and general corporate purposes.

• Ather Energy has revised its IPO size downward from an initial Rs 3,100 crore fresh issue to Rs 2,626 crore, reflecting a cautious approach amid volatile market conditions and subdued investor appetite for capital-intensive tech ventures.

• The OFS component has also been trimmed by half compared to earlier plans, with promoters and investors scaling back their share sales. Notably, a major stakeholder will not participate in the share sale, signaling continued confidence in the company’s prospects.

• The company’s valuation has been adjusted to a more conservative pre-money range of Rs 9,900 to 10,000 crore, with the post-money valuation expected to exceed Rs 12,000 crore. This is a marked reduction from the previously filed valuation, aligning with current market realities.

• Financially, Ather Energy has shown progress by narrowing losses in recent quarters, reporting a loss of Rs 579.6 crore in the first nine months of the current financial year against a higher loss in the previous year, supported by increased sales of its electric scooters.

• The IPO launch breaks a two-month lull in India’s primary market and follows the trail blazed by other electric vehicle manufacturers. Ather’s listing is keenly watched as a barometer for investor sentiment towards clean mobility and electric vehicle startups.

• The company’s in-house developed software platform enhances its product offering by integrating navigation, ride analytics, safety, and productivity features, differentiating it in a competitive EV market.

• Ather Energy’s journey from a startup incubated at a premier institute to a publicly listed company underscores the growing momentum of India’s electric mobility revolution, even as it faces stiff competition from larger players.

• The IPO proceeds will enable Ather to scale production capacity, expand retail and experience centers, and accelerate innovation, positioning it to capture both urban and tier II city markets in India’s fast-evolving EV landscape.

• Investors eyeing the IPO should weigh the company’s growth potential against the inherent risks of a capital-intensive business still operating at a loss. The performance of other EV companies post-IPO serves as a cautionary tale.

• With the IPO subscription set to open on April 28, market participants and EV enthusiasts alike await the debut of Ather Energy on India’s stock exchanges, anticipating a new chapter in the country’s electric vehicle story.