Ather Energy IPO Opens Today with Rs 2,981 Crore Offer
Ather Energy launched its highly anticipated Initial Public Offering (IPO) today, April 28, 2025, with an aggregate offer size of Rs 2,981.06 crore. The offering includes a fresh issue of equity shares worth Rs 2,626 crore and an Offer for Sale (OFS) component of 1.1 crore shares by existing shareholders and promoters. Ather Energy, a leading player in India’s electric two-wheeler (E2W) market, has fixed its IPO price band between Rs 304 and Rs 321 per equity share, each carrying a face value of Re 1.
IPO size: Rs 2,981.06 crore (Fresh issue: Rs 2,626 crore + OFS: 1.1 crore shares).
Price band: Rs 304 to Rs 321 per share.
IPO opened today, April 28, 2025.
Despite ambitious expansion plans, including a new manufacturing facility in Maharashtra, Ather Energy continues to face financial headwinds. As of December 31, 2024, the company had borrowings exceeding Rs 1,121 crore and continues to report losses, reflected in its negative Price-to-Earnings (P/E) ratio. Analysts caution that Ather Energy remains a long-term bet, suitable for well-informed investors with surplus capital. The company’s strong backing by its parent and its strategic focus on profitability improvement have been highlighted as positives, but caution remains the key theme for retail investors.
Total borrowings: Over Rs 1,121 crore as of December 2024.
Negative P/E ratio, indicating consistent losses.
Analysts recommend only long-term investors with surplus funds consider investing.
Analysts noted that Ather Energy, at the upper price band of Rs 321, is valued at an EV/sales multiple of approximately 8x based on nine months of FY25 sales totaling Rs 1,578.9 crore. While recent government subsidy cuts have pressured the sector, Ather Energy has successfully improved its profitability metrics. Analysts have issued a ‘Subscribe for listing gains’ recommendation based on the company’s valuation and operational improvements.
EV/sales multiple: 8x based on 9MFY25 sales.
Improved profitability despite subsidy cuts.
Recommendation: ‘Subscribe for listing gain’.
Arihant Capital has assigned a ‘Subscribe for listing gain’ rating to the Ather Energy IPO, citing the company’s early-mover advantage in the premium electric two-wheeler market, strong in-house R&D capabilities, and successful new product launches such as the Ather Rizta. Furthermore, Ather’s upcoming ‘Factory 3.0’ is expected to boost annual production capacity significantly, from 420,000 units to 1.42 million units by FY27, while ongoing R&D and cost optimization are projected to further improve margins.
Production capacity to rise from 420,000 to 1.42 million units by FY27.
Early mover advantage and premium product positioning.
Strong R&D and technology base support future growth.
Ather Energy’s comprehensive business model focuses not only on electric two-wheeler manufacturing but also on building a full ecosystem, including proprietary software platforms, extensive charging infrastructure, and smart accessories, all developed in India. This vertically integrated approach offers Ather a distinct advantage in controlling quality, customer experience, and technology innovation.
Full ecosystem offerings: vehicles, software, charging networks, accessories.
Complete in-house development in India.
Enhanced customer experience and technology innovation.
The Ather Energy public issue is being managed by top financial institutions. Link Intime India Private Limited is the registrar for the offering. Axis Capital, HSBC Securities and Capital Markets, JM Financial, and Nomura Financial Advisory and Securities (India) are acting as the book-running lead managers for the IPO, ensuring wide institutional reach and efficient execution.
Registrar: Link Intime India Pvt Ltd.
Lead managers: Axis Capital, HSBC, JM Financial, Nomura India.
Proceeds from the fresh issue will be strategically utilized to support Ather Energy’s capital expenditure plans, notably the establishment of a new E2W manufacturing facility in Maharashtra. Additional proceeds will go toward the repayment or prepayment of certain borrowings, investments in R&D, marketing efforts, and for general corporate purposes. However, the company will not receive any proceeds from the Offer for Sale (OFS), as clarified in its Red Herring Prospectus (RHP).
Funding new manufacturing facility in Maharashtra.
Repayment of certain borrowings.
R&D investment and marketing initiatives planned.
The bidding window for the Ather Energy IPO opens on April 28, 2025, and closes on April 30, 2025. The basis of allotment is expected to be finalized by May 2, 2025, with shares likely to be listed on the NSE and BSE on May 6, 2025. Investors should track these dates closely for updates on subscription status and allotment results.
IPO bidding window: April 28–30, 2025.
Allotment date: May 2, 2025 (tentative).
Listing date: May 6, 2025 (tentative).
Ather Energy successfully raised Rs 1,340.03 crore from anchor investors ahead of the IPO launch, indicating robust institutional interest. This pre-IPO funding round helps establish confidence among retail investors and ensures partial subscription before public bidding opens.
Anchor investors raised Rs 1,340.03 crore.
Strong institutional participation signals positive sentiment.
The grey market premium (GMP) for the Ather Energy IPO witnessed a sharp decline following the company’s announcement of its price band. As of today, shares are trading steady around Rs 321 per piece — the upper limit of the IPO price band — suggesting a zero GMP and indicating muted grey market enthusiasm at present.
GMP dropped significantly after price band announcement.
Shares trading at Rs 321 in grey market — implying zero GMP.
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