Ather Energy IPO: India's Electric Scooter Pioneer Hits the Stock Market

Ather Energy, a frontrunner in India’s electric two-wheeler segment, is set to launch its Initial Public Offering (IPO) on April 28, 2025. Founded in 2013, the company has been instrumental in driving India’s electric mobility push. The IPO will help fund its expansion and boost its standing in the increasingly competitive EV market. 

IPO Details: Fresh Issue + Offer for Sale

Ather’s IPO consists of a fresh issue and an offer for sale (OFS): 

Fresh Issue: ₹2,626 crore 

Offer for Sale: 1.10 crore equity shares worth ₹354.76 crore 

Total Issue Size: ₹2,980.76 crore 

Price Band: ₹304–₹321 per share 

Lot Size: 46 shares 

Minimum Investment: ₹14,766 

Open Date: April 28, 2025 

Close Date: April 30, 2025 

Listing Date: May 6, 2025 

Exchanges: BSE and NSE 

Objects of the Issue

Proceeds from the fresh issue will be used for: 

New Manufacturing Facility: ₹927.2 crore (32.62%) for a plant in Maharashtra 

R&D: ₹750 crore (25.15%) to boost product innovation 

Marketing: ₹300 crore (10.06%) to expand brand reach 

Debt Repayment: ₹40 crore (1.34%) 

General Corporate Use: Remaining funds 

Offer for Sale Details: Selling Shareholders

Promoters 

Tarun Mehta (CEO): 10,00,000 shares (~₹32.1 crore) 

Swapnil Jain (CTO): 10,00,000 shares (~₹32.1 crore) 

Institutional/Corporate Investors

Caladium Investment Pte Ltd: 1,05,20,000 shares (~₹337.7 crore) 

NIIF II: 46,16,519 shares (~₹148.2 crore) 

Internet Fund III (Tiger Global): 40,00,000 shares (~₹128.4 crore) 

3State Ventures Pte. Ltd.: 4,80,000 shares (~₹15.4 crore) 

IITM Incubation Cell: 3,10,495 shares (~₹10 crore) 

IITMS Rural Tech Incubator: 41,910 shares (~₹1.3 crore) 

Individuals

Amit Bhatia: 18,531 shares (~₹59.5 lakh) 

Karandeep Singh: 13,311 shares (~₹42.7 lakh) 

Notably, Hero MotoCorp, Ather's largest shareholder (37.2% stake), is not participating in the OFS—signaling confidence in Ather’s growth trajectory. 

Company Overview

Founded by Tarun Mehta and Swapnil Jain, Ather designs and manufactures electric scooters, battery packs, and related software. Known for the Ather 450 series and the recently launched Ather Rizta, the brand offers smart features like touchscreen dashboards and internet connectivity. 

As of December 31, 2024, Ather operates: 

India: 265 Experience Centres, 233 Service Centres 

Nepal: 5 Experience Centres, 4 Service Centres 

Sri Lanka: 10 Experience Centres, 1 Service Centre 

Financials: Revenue Growth Amidst Narrowing Losses

Ather’s financials show solid revenue growth, with signs of narrowing losses: 

The launch of the Ather Rizta has notably contributed to revenue growth and reduced losses. 

Conclusion

Ather Energy’s IPO offers a chance to invest in India’s evolving EV space. With a strong lineup, growing footprint, and emphasis on innovation, the company is poised to benefit from the shift to electric mobility. Still, investors should carefully evaluate Ather’s financials and the competitive landscape before committing.