Ather Energy, one of India\u2019s leading electric two-wheeler manufacturers, is preparing to go public with a strong focus on capital efficiency and operational agility, according to co-founder Tarun Mehta. In a press briefing held on April 23, Mehta outlined the company’s “capex-light” philosophy and partner-led growth model as it braces for its Rs 2,981 crore initial public offering (IPO) later this month.<\/p>\n
Mehta emphasized that Ather has always steered clear of large capital expenditures, choosing instead to maintain agility in a rapidly evolving electric vehicle (EV) industry. \u201cWe don\u2019t want to lock ourselves into large capex decisions that reduce our flexibility,\u201d he noted.<\/p>\n
Highlights:<\/p>\n
Ather Energy adopts a capex-light strategy to preserve agility in the fast-moving EV sector.<\/p>\n<\/li>\n
Focus on capital efficiency since inception, avoiding heavy infrastructure investments.<\/p>\n<\/li>\n
IPO scheduled for May 6 with subscription opening from April 28\u201330.<\/p>\n<\/li>\n<\/ul>\n
Ather\u2019s operational strategy hinges on outsourcing production while retaining control over design and supply chains. According to Mehta, nearly 80% of the hardware and electronics on Ather scooters are designed in-house, including battery management systems, dashboards, and motor controllers. The actual production, however, is executed by third-party vendors, allowing the company to avoid large manufacturing-related capex.<\/p>\n
Additionally, Ather operates through a dealer- and franchise-based retail model, which eliminates the need to invest in company-owned stores, further reducing capital burdens.<\/p>\n
Highlights:<\/p>\n
80% of Ather\u2019s hardware and electronics are in-house IP.<\/p>\n<\/li>\n
Manufacturing is vendor-led while design and supplier control remains with Ather.<\/p>\n<\/li>\n
Franchise-based dealership model reduces retail infrastructure capex.<\/p>\n<\/li>\n<\/ul>\n
While Ather Energy had posted losses in previous years, Mehta revealed that the company has now turned a corner, witnessing significant growth in sales and profitability metrics. In the quarter ending December 2024, unit sales jumped nearly 45%, rising from 74,000 to 108,000 units year-on-year.<\/p>\n
The company also reported substantial improvement in gross margins, which nearly doubled from 9% in December 2023 to 19% in December 2024. This performance was attributed to multiple factors, including cost reduction efforts, robust software monetization, and the success of the Ather Resta model.<\/p>\n
Highlights:<\/p>\n
December 2024 quarter saw 45% year-on-year volume growth.<\/p>\n<\/li>\n
Unit sales rose to 108,000 from 74,000 a year earlier.<\/p>\n<\/li>\n
Adjusted gross margins improved from 9% to 19% year-on-year.<\/p>\n<\/li>\n<\/ul>\n
Ather Energy\u2019s IPO marks the first mainboard listing of the 2025\u201326 financial year and is set to debut on May 6. The public offering will comprise a fresh issue of equity shares worth Rs 2,626 crore and an Offer for Sale (OFS) of 1.1 crore shares by existing shareholders.<\/p>\n
The company has set a price band of Rs 304-321 per share, and the issue will remain open for public subscription from April 28 to April 30. Anchor investor bidding is scheduled for April 25.<\/p>\n
Management clarified that the OFS component is limited to just 12% of the total issue, indicating strong conviction among shareholders in Ather\u2019s long-term prospects. The reduction in OFS size was a deliberate move as existing investors preferred to retain their stakes, reflecting confidence in future growth.<\/p>\n
Highlights:<\/p>\n
IPO includes Rs 2,626 crore fresh issue and 1.1 crore share OFS.<\/p>\n<\/li>\n
Public subscription window: April 28\u201330; anchor bidding: April 25.<\/p>\n<\/li>\n
OFS trimmed to 12% due to strong shareholder confidence.<\/p>\n<\/li>\n<\/ul>\n
As the EV market in India matures and competition intensifies, Ather\u2019s lean approach to capital deployment sets it apart from peers investing heavily in infrastructure. With in-house IP, strong supply chain control, and a flexible retail model, the company positions itself to scale efficiently without compromising agility.<\/p>\n
Backed by strong government incentives, increasing consumer acceptance of EVs, and ongoing policy support, Ather Energy is gearing up to capitalize on the growing demand in the two-wheeler electric segment. The company\u2019s focus on innovation, efficiency, and asset-light growth makes it a standout player as it enters the public markets.<\/p>\n
Highlights:<\/p>\n
Ather\u2019s model offers scalability without heavy asset deployment.<\/p>\n<\/li>\n
EV policy support and rising consumer demand provide tailwinds.<\/p>\n<\/li>\n
IPO to test investor appetite for asset-light EV manufacturing models.<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"
Tarun Mehta Emphasizes ‘Capex Light’ Strategy Ahead of Public Listing Ather Energy, one of India\u2019s leading electric two-wheeler manufacturers, is preparing to go public with a strong focus on capital efficiency and operational agility, according to co-founder Tarun Mehta. In a press briefing held on April 23, Mehta outlined the company’s “capex-light” philosophy and partner-led […]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1367],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-7520","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ipo-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/7520","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=7520"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/7520\/revisions"}],"predecessor-version":[{"id":7522,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/7520\/revisions\/7522"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/7521"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=7520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=7520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=7520"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=7520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}