Ather Energy’s ₹2,981 Crore IPO Launches– Ather Energy’s ₹2,981 crore IPO has officially hit the Indian stock markets, creating significant buzz among retail and institutional investors alike. Known for its premium electric two-wheelers like the Ather 450X and newly launched Ather Rizta, the Bengaluru-based company is aiming to fuel its next phase of growth with this major public offering. But the big question remains — is it worth investing in Ather Energy’s IPO? In this article, we’ll break it down in simple terms — explaining what the IPO offers, the company’s financial health, growth potential, risks involved, expert advice, and comparisons with other players like Ola Electric to help you decide.
Ather Energy’s ₹2,981 Crore IPO Launches
| Particulars | Details |
|---|---|
| IPO Size | ₹2,981 crore |
| Price Band | ₹304 – ₹321 per share |
| Lot Size | 46 shares per lot |
| Issue Type | Fresh issue of ₹2,626 crore + Offer for Sale (OFS) of ₹355 crore |
| IPO Dates | April 28, 2025 – April 30, 2025 |
| Listing on | BSE and NSE |
| Company Valuation (Post IPO) | Approx. ₹11,956 crore |
| Revenue Growth (FY22-FY24) | 107% |
| Net Loss (FY24) | ₹1,059.7 crore |
| Market Share | 11.5% in India’s electric two-wheeler (E2W) segment |
| Official Website | atherenergy.com |
Ather Energy’s ₹2,981 crore IPO offers a rare opportunity to invest in a pioneer of India’s premium electric mobility sector. While its tech innovations and growth plans are exciting, the high cash burn and competition risks must be carefully considered. Suitable mainly for investors with a moderate-to-high risk appetite and a long-term vision.
Understanding Ather Energy: A Quick Background
Founded in 2013 by IIT Madras graduates Tarun Mehta and Swapnil Jain, Ather Energy has carved out a strong name in India’s electric vehicle (EV) space. It was among the first companies to introduce smart, connected electric scooters, offering a tech-driven experience in a traditionally basic segment. Some of its key products include:
- Ather 450X – a premium electric scooter known for performance and connectivity.
- Ather Rizta – launched recently for families, promising a safe and comfortable ride. Unlike traditional manufacturers, Ather focuses heavily on R&D and software innovation, giving it an edge in India’s rapidly growing EV market.
IPO Details: What Investors Should Know
Breakdown of the Offer
The ₹2,981 crore issue consists of:
- Fresh Issue: ₹2,626 crore will go toward funding capital expenditure, new product development, expanding retail presence, and repaying debt.
- Offer for Sale (OFS): ₹355 crore worth of shares will be sold by early investors like Tiger Global and founders.
Use of Proceeds
- Scale up production capacity (new factories)
- Strengthen R&D in battery tech, AI-based vehicle management
- Expand experience centers across India
- Reduce debt and improve balance sheet health
Financial Performance: Growth vs Losses
While Ather’s revenue numbers look impressive, its bottom line is still in the red. Positive signs:
- Revenue surged 107% from FY22 to FY24
- Software services (Atherstack subscriptions) contribute about 6% of total revenue
- Strong backing from Hero MotoCorp (33% stake) and Tiger Global Challenges:
- Losses widened from ₹864.5 crore (FY23) to ₹1,059.7 crore (FY24)
- Significant debt burden of ₹1,121 crore as of December 2024
- 68% of sales come from South India
Comparison With Ola Electric IPO
| Factor | Ather Energy IPO | Ola Electric (Upcoming IPO) |
|---|---|---|
| Revenue (FY24) | ₹1,806 crore approx | ₹2,782 crore approx |
| Net Loss (FY24) | ₹1,059.7 crore | ₹1,472 crore |
| Market Share in EV Scooters | 11.5% | 38% |
| Key Focus | Premium E2W + Connected Scooters | Mass Market E2W + Cost Leadership |
| Valuation (Expected) | ₹11,956 crore | ₹40,000 crore (expected) |
| Takeaway: Ather focuses on premium and tech-driven scooters, while Ola targets mass affordability. |
Strengths That Make Ather IPO Attractive
- First-mover advantage in premium electric scooters
- Strong brand loyalty in urban tech-savvy users
- Aggressive expansion: Plans to triple production capacity by FY27
- Focus on software monetization — rare among E2W brands
Risks Investors Should Watch Out For
- High cash burn and losses affecting long-term sustainability
- Competition from big names like Ola Electric, TVS, Bajaj Auto
- Dependence on South India for major sales
- Policy risk: EV subsidies like FAME-II might expire by 2025
Institutional Investor Response and Anchor Investors
Ather Energy’s anchor book attracted big names such as:
- Goldman Sachs
- Fidelity Investments
- ICICI Prudential Mutual Fund Anchor portion was subscribed 2.5 times, showing strong institutional confidence.
IPO Subscription Status (Day 1 Update)
- Retail Individual Investors (RII): Subscribed 1.4 times
- Qualified Institutional Buyers (QIBs): Subscribed 0.8 times
- Non-Institutional Investors (NIIs): Subscribed 1.2 times Interpretation: Strong retail interest, moderate institutional appetite.
Market Opportunity: EV Sector Outlook
India’s EV industry is expected to grow at a CAGR of 49% between 2025-2030. By 2030, 30% of all vehicles sold in India are expected to be electric, according to NITI Aayog and Bloomberg New Energy Finance. Government schemes like FAME-II, PLI for Battery Manufacturing, and EV-friendly state policies are major growth drivers.
Expert Opinions: Should You Invest?
- Arihant Capital: Subscribe for listing gains but monitor cash burn closely.
- Ventura Securities: Good choice for risk-tolerant, tech-focused investors.
- Bajaj Broking: Exercise caution due to losses. Long-term investors only.
Should You Apply for Ather Energy IPO?
| Investor Type | Action Suggested |
|---|---|
| Short-term investor | Apply for possible listing gains |
| Long-term aggressive investor | Apply with limited exposure |
| Conservative investor | Prefer to wait and buy post-listing |
| If you believe in India’s EV revolution and want early exposure to a premium, tech-driven EV brand, Ather could be a smart — though risky — bet. |
Bonus Tip for IPO Investors
Always check IPO allotment results via BSE India IPO Allotment Portal or your broker’s platform.
Refunds typically happen within 5–7 working days if not allotted.
IPO listing gains can fluctuate sharply — don’t panic sell if you have a long-term horizon!
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FAQs about Ather Energy’s ₹2,981 Crore IPO Launches
Q1. What is the Ather Energy IPO price band?
The price band is ₹304 to ₹321 per share.
Q2. What is the minimum investment amount?
One lot (46 shares) costs ₹14,766 at the upper price band.
Q3. How much is fresh issue vs OFS?
₹2,626 crore is fresh issue; ₹355 crore is offer for sale.
Q4. When will shares be listed?
Listing is expected on May 6, 2025.
Q5. Is Ather Energy profitable?
No, it is still loss-making, posting a ₹1,059.7 crore loss in FY24.
