Ather Energy Prepares for IPO: Aiming to Raise ₹2,626 Crore
Ather Energy, one of India’s leading electric vehicle (EV) manufacturers, is set to launch its Initial Public Offering (IPO) between April 28 and April 30, 2025. The company plans to raise a significant ₹2,626 crore through the fresh issue of shares, marking a major milestone in the country’s EV sector. This IPO is poised to attract considerable attention from investors, as Ather Energy is positioned as a prominent player in the electric mobility market, known for its premium electric scooters. The fresh issue will enable the company to expand its footprint, enhance its manufacturing capabilities, and support its growth trajectory within India’s fast-growing EV market.
Ather Energy’s decision to go public comes at a time when India is accelerating its push towards electric mobility, aligning with the government’s goals to reduce carbon emissions and make the EV industry a key contributor to the nation’s sustainable development. Investors are anticipating strong demand for Ather’s shares, with the company’s cutting-edge technology, strong brand presence, and robust growth prospects in the EV sector.
Highlights:
Ather Energy to raise ₹2,626 crore through fresh share issue.
IPO launch dates: April 28 to April 30, 2025.
Funds will support manufacturing expansion and market growth.
The IPO comes amid India’s push for electric mobility.
Ather Energy’s Valuation and Stake Sale by Founders and Investors
Ather Energy’s draft red herring prospectus (RHP) has been filed with the Securities and Exchange Board of India (SEBI), pegging the company’s valuation at around ₹14,000 crore. This marks a significant increase in Ather’s market value from previous estimates, showcasing investor confidence in the company’s ability to scale up and capture a larger share of India’s burgeoning electric vehicle market.
In the upcoming IPO, co-founders Tarun Mehta and Swapnil Jain, along with existing investors like the National Investment and Infrastructure Fund Limited (NIIF) and Tiger Global Management’s Internet Fund III, will be offloading part of their stakes. These investors are looking to capitalize on the company’s successful growth trajectory and offer liquidity to shareholders. However, Hero MotoCorp, a major stakeholder with over 37% ownership in Ather Energy, will not participate in this share sale. The decision not to sell shares indicates Hero MotoCorp’s long-term strategic commitment to the electric vehicle sector and its belief in Ather Energy’s future growth.
Highlights:
Valuation pegged at ₹14,000 crore following the re-filed IPO.
Founders Tarun Mehta and Swapnil Jain, along with NIIF and Tiger Global, to offload stakes.
Hero MotoCorp, holding 37%, will not participate in the IPO sale.
Ather Energy’s IPO: A Key Milestone for India’s EV Market
Ather Energy will become the second pure-play electric vehicle manufacturer in India to go public, following Ola Electric’s IPO, which was launched last year. The entry of Ather Energy into the public market comes at a pivotal time for the EV industry, as India is rapidly adopting electric vehicles due to increased awareness of environmental concerns and government incentives aimed at promoting green mobility. The IPO is expected to set a new benchmark for other EV startups in the country, encouraging further investments in India’s clean energy transition.
Ather Energy’s decision to enter the capital markets is indicative of the company’s ambition to lead in the premium EV segment. The brand is already well-established in India with its range of electric scooters, including the Ather 450X and Ather 450 Plus, which are known for their performance, design, and advanced features. As Ather Energy expands its product portfolio and reaches new consumers across India, the IPO will provide the company with much-needed capital to scale operations and meet the growing demand for electric vehicles.
Highlights:
Ather becomes second EV maker after Ola Electric to go public.
Government incentives and environmental awareness fuel EV adoption.
IPO to set benchmark for future EV startups in India.
Investment Sentiment and Outlook for Ather Energy IPO
The investment sentiment surrounding Ather Energy’s IPO is likely to be positive, with analysts expecting strong demand given the company’s market leadership and promising growth potential. The IPO is also seen as an opportunity for retail investors to gain exposure to the electric vehicle sector, which is poised for rapid expansion in the coming years. Given the favorable regulatory environment, Ather Energy is expected to capitalize on the shift towards clean and sustainable mobility solutions in India. The IPO proceeds will be used to fund the company’s expansion plans, including the scaling up of its manufacturing capacity, enhancing product offerings, and expanding its retail network.
Investors will closely monitor the company’s post-IPO performance, particularly in terms of revenue growth, market share gains, and the execution of its strategic goals. With the increasing focus on reducing pollution and combating climate change, Ather Energy is well-positioned to benefit from the rising demand for electric vehicles in India and abroad.
Highlights:
Positive investment sentiment expected due to Ather’s market leadership.
IPO to fund manufacturing capacity expansion and product development.
Favorable regulatory environment supports EV growth.
