Ather Energy sets IPO launch date as it takes a monumental step towards becoming a public company, entering Dalal Street with confidence and ambition. The electric two-wheeler startup has announced that its initial public offering (IPO) will open for subscription on April 28 and close on April 30, with a price band fixed between Rs 304 and Rs 321 per share. This move is significant, especially given the subdued IPO activity in India in 2025, with only nine companies hitting the public markets so far.
The Bengaluru-based EV player plans to raise a total of Rs 2,980.76 crore through the IPO, including a fresh issue worth Rs 2,626 crore and an offer for sale (OFS) of 1.1 crore shares. The company will utilize these funds for expansion, research and development (R&D), debt repayment, and general corporate purposes. This includes a Rs 927.2 crore investment in a new manufacturing facility in Maharashtra and Rs 750 crore to scale its R&D initiatives. Ather’s anchor book will open on April 25, and the listing is scheduled for May 6.
Founded in 2013 by IIT Madras alumni Tarun Mehta and Swapnil Jain, Ather Energy has grown into a formidable player in India’s clean mobility ecosystem. Its current portfolio includes the Ather 450 series and the newly introduced Ather Rizta. With 11% market share in India’s electric two-wheeler segment and significant traction in South India, Ather is well-positioned to capitalize on growing consumer demand and favorable policy shifts towards EV adoption.
This IPO marks Ather as the second pure-play EV company after Ola Electric to list on Indian exchanges. Backed by major investors and institutions, Ather’s public listing signals maturity and scale in the Indian EV startup landscape.
1. Ather Energy Sets IPO Launch Date: A Key Milestone in India’s EV Revolution
1.1 The Business Model: Driving India’s Premium Electric Mobility Shift
Ather Energy operates as a clean energy mobility tech startup focused on premium electric scooters. Its vertically integrated model allows the company to control core aspects of design, software, and battery systems. Ather manufactures its battery packs in-house using imported lithium-ion cells while outsourcing chassis and electronics production. This ensures product quality, scalability, and operational efficiency.
The company sells directly to consumers via experience centers and also offers financing, insurance, and connected tech services under its proprietary software platform, Atherstack. The Atherstack system powers smart features such as navigation, real-time diagnostics, ride analytics, and safety enhancements.
1.2 The Revenue Model: Multi-Layered Monetization Strategy
Ather generates revenue primarily through vehicle sales, service subscriptions, battery replacement plans, and in-app digital services. Additional income flows from government incentives under India’s FAME II policy and state-specific subsidies. The firm also monetizes its charging infrastructure network, Ather Grid, installed across major cities.
1.3 Founders and Their Vision
Founded by Tarun Mehta and Swapnil Jain, both IIT Madras graduates, Ather emerged from the IIT Madras incubator. Tarun, a design and business strategist, and Swapnil, an electronics and firmware expert, envisioned building a premium EV experience from the ground up. Their deep-tech and innovation-first approach helped Ather secure early traction and investor trust.
1.4 Product Lineup and Innovations
Ather’s product portfolio includes the flagship Ather 450 series and the newly launched Ather Rizta. These vehicles offer high performance, long range, and superior connectivity. With a range of up to 150 km on a single charge and fast-charging options, the scooters appeal to tech-savvy urban commuters.
2. IPO Details and Strategic Use of Funds
2.1 Breakdown of the Offering
The IPO will consist of a fresh issue worth Rs 2,626 crore and an OFS of 1.1 crore shares, which is expected to raise Rs 354.8 crore. The total issue size stands at Rs 2,980.76 crore, lower than the initially proposed Rs 4,000 crore.
2.2 Deployment of Capital
The funds will be utilized in the following manner:
2.2.1 Manufacturing Expansion
Rs 927.2 crore will be invested in building a new two-wheeler manufacturing plant in Maharashtra.
2.2.2 Research and Development
Ather has earmarked Rs 750 crore to expand R&D, focusing on battery tech and its Atherstack software.
2.2.3 Marketing and Branding
To scale its market presence, Rs 300 crore will support aggressive branding and sales initiatives.
2.2.4 Debt Repayment and Other Expenses
Rs 40 crore is allocated for debt repayment and the rest for general corporate purposes from FY26 to FY28.
3. Market Position and Performance
3.1 Growth Metrics
As of December 2024, Ather reported Rs 1,578.9 crore in revenue for the nine months, up from Rs 1,230.4 crore YoY. Net losses narrowed to Rs 577.9 crore from Rs 776.4 crore the previous year, signaling improving operational efficiency.
3.2 Market Share and Distribution
Holding 11% of the Indian EV two-wheeler market, Ather’s dominance is evident in the South, contributing 68% of volumes. However, the company is now aggressively expanding pan-India.
3.3 Investor Backing
The company is backed by marquee investors including Hero MotoCorp, Tiger Global, and Flipkart co-founder Sachin Bansal. Axis Capital, HSBC, JM Financial, and Nomura are lead book-running managers.
4. Strategic Significance of the IPO
4.1 Second Pure-Play EV IPO
After Ola Electric, Ather becomes the second dedicated EV firm to go public. This positions it as a benchmark for EV valuations in India.
4.2 Timely Entry Amid Startup IPO Lull
With just nine IPOs in 2025, Ather’s entry boosts optimism in India’s public markets. The IPO may revive investor interest in startup listings.
4.3 Strengthening India’s Clean Mobility Push
The listing is a crucial development in India’s shift toward sustainable mobility, enhancing trust in EV startups and attracting more funding.
5. Learning for Startups and Entrepreneurs
5.1 Product-Market Fit is Crucial
Ather succeeded by building a premium product that resonated with urban commuters. Understanding customer pain points and tech-driven solutions played a major role.
5.2 Control Your Core Tech
Owning key elements like battery design and software helped Ather innovate faster and reduce dependency.
5.3 Timing Your IPO
Choosing the right time to go public—amid a low-IPO activity market—gave Ather greater visibility and investor interest.
5.4 Long-Term Vision with Fiscal Discipline
Despite losses, consistent revenue growth and strategic fund usage reflect sound business planning, which appeals to investors.
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