Ather Energy IPO is here to make waves in the EV stocks arena!
Ather Energy, a leading name in India’s electric two-wheeler (E2W) market, has launched its much-anticipated Initial Public Offering (IPO). The company, known for its premium electric scooters like the Ather 450X and Ather Rizta, is backed by industry giant Hero MotoCorp and has positioned itself as a pioneer in electric mobility.
The IPO, which opened for subscription on April 28, 2025, and closes on April 30, 2025, offers investors a chance to participate in the growth story of a pure-play EV company. This blog provides a comprehensive overview of the Ather Energy IPO, covering key details, subscription status, grey market premium (GMP), financials, and more, with all critical information summarized in a detailed table.
About Ather Energy
Founded in 2013 by IIT Madras graduates Tarun Mehta and Swapnil Jain, Ather Energy is a Bangalore-based electric vehicle manufacturer focused on designing and developing high-quality E2Ws, battery packs, charging infrastructure, and related software and accessories.
The company launched its first product, the Ather 450, in June 2018, introducing innovative features like a touchscreen dashboard, connected technology, and a top speed of 80 kmph, setting a benchmark in the Indian E2W market. According to the CRISIL Report, Ather Energy was the third-largest player by E2W sales volume in Fiscal Year 2024, selling 109,577 units, and the fourth-largest in the nine months ended December 31, 2024, with 107,983 units sold.
Ather Energy product portfolio includes the Ather 450 series (Ather 450X, 450S, and 450 Apex) and the Ather Rizta line, known for premium pricing and advanced features like WhatsApp notifications on the dashboard.
The company has also developed the Ather Grid, a fast-charging network with over 1,000 stations across more than 100 cities in India, addressing range anxiety for EV users. With a manufacturing facility in Hosur, Tamil Nadu, and plans for a new unit in Maharashtra, Ather is scaling up to meet growing demand.
Suggested Read: EV Stocks in India Set to Soar in 2025: Top Picks You Can’t Miss
Ather Energy IPO Overview
The Ather Energy IPO is a book-building issue worth ₹2,981.06 crore, comprising a fresh issue of 8.18 crore equity shares aggregating to ₹2,626.30 crore and an offer for sale (OFS) of 1.11 crore shares aggregating to ₹354.76 crore. The IPO is priced between ₹304 and ₹321 per share, with a minimum lot size of 46 shares, requiring a minimum investment of ₹14,766 for retail investors at the upper price band. The IPO is set to list on the BSE and NSE, with a tentative listing date of May 6, 2025.
Ather Energy raised ₹1,340.03 crore from 36 anchor investors on April 25, 2025, including prominent names like Franklin Templeton, Abu Dhabi Investment Authority, Morgan Stanley, and domestic mutual funds like SBI and ICICI Prudential. The company has reserved up to 100,000 shares for employees with a ₹30 per share discount, but there is no shareholder reservation quota for Hero MotoCorp shareholders, despite Hero MotoCorp holding a 38.19% pre-offer stake.
Ather Energy IPO Key Dates
| Event | Date |
| Anchor Investor Allotment | April 25, 2025 |
| Ather Energy IPO Opening Date | April 28, 2025 |
| Ather Energy IPO Closing Date | April 30, 2025 |
| Basis of Allotment Finalization | May 2, 2025 |
| Ather Energy IPO Refunds Initiation | May 5, 2025 |
| Shares Credited to Demat Accounts | May 5, 2025 |
| Ather Energy IPO Listing Date (BSE/NSE) | May 6, 2025 |
IPO Details
| Particulars | Details |
| Ather Energy IPO Type | Book Built Issue |
| Ather Energy IPO Price Band | ₹304 to ₹321 per share |
| Face Value | ₹1 per share |
| Lot Size | 46 shares |
| Total Issue Size | ₹2,980.76 crore |
| Fresh Issue | ₹2,626 crore |
| Offer for Sale (OFS) | ₹354.76 crore (1.10 crore shares) |
| Listing Exchanges | BSE and NSE |
| Registrar | Link Intime India Pvt Ltd |
Subscription Status (as of April 29th, 2025)
| Investor Category | Subscription (Times) |
| Qualified Institutional Buyers (QIB) | 1.03x |
| Non-Institutional Investors (NII) | 1.45x |
| Retail Individual Investors (RII) | 1.82x |
| Total Subscription | 1.29x |
Grey Market Premium (GMP)
As of April 29, 2025, the Grey Market Premium for Ather Energy IPO stood at ₹5 per share. This indicates a modest premium over the upper price band of ₹321, suggesting cautious optimism among investors.
Key Objectives of the IPO
The net proceeds from the IPO will be utilized for:
- Establishing an electric two-wheeler factory in Maharashtra to expand production capacity.
- Investing in research and development (R&D) to develop new products and enhance technology.
- Marketing initiatives to strengthen brand presence.
- Repayment of loans to reduce debt, which stood at over ₹1,121 crore as of December 31, 2024.
- General corporate purposes.
Financial Performance
Ather Energy’s financials reflect its growth and challenges as an EV player. In FY24, the company reported revenue of ₹1,789.1 crore, slightly down from ₹1,801.8 crore in FY23. Losses increased to ₹1,059.7 crore in FY24 from ₹864.5 crore in FY23, reflecting heavy investments in R&D and expansion.
The IPO is priced at a negative price-to-earnings (PE) ratio due to these losses, making it a long-term investment bet on the EV sector’s growth. The company’s market capitalization post-IPO is estimated at ₹11,955.96 crore.
Strengths and Risks
Strengths
- Market Leadership: Third-largest E2W player by volume in FY24, with a 12% market share in the Indian E2W industry.
- Innovation: In-house development of Atherstack software and Ather Grid charging network.
- Premium Positioning: High-quality products with advanced features, appealing to urban consumers.
- Strong Backing: Support from Hero MotoCorp and investors like Tiger Global.
- Growing EV Market: India’s E2W market is expanding, driven by government incentives like the FAME scheme and rising fuel costs.
Risks
- Financial Losses: Consistent losses (₹1,059.7 crore in FY24) and negative PE ratio.
- High Debt: Borrowings of over ₹1,121 crore as of December 31, 2024.
- Reduced IPO Size: Fresh issue reduced from ₹3,100 crore (DRHP) to ₹2,626 crore (RHP), and OFS size cut from 2.2 crore to 1.11 crore shares.
- Market Competition: Intense competition from players like Ola Electric, TVS Motor, and Bajaj Auto.
- Oversubscription Risk: Low subscription so far (0.17x) may indicate cautious investor sentiment, though retail interest is moderate (0.69x).
Conclusion
The Ather Energy IPO presents a unique opportunity to invest in a leading player in India’s rapidly growing electric two-wheeler market. While the company’s innovation, premium positioning, and strong backing from Hero MotoCorp are compelling, its financial losses, high debt, and volatile GMP warrant caution.
The IPO is best suited for long-term investors with a high risk appetite who believe in the potential of the EV sector.
Retail investors should apply at the cut-off price (₹321) to improve allotment chances in case of oversubscription and carefully review the RHP for detailed insights.
So, what’s your take? Will you invest in this IPO??
Let us know in the comments 😉
FAQs
Is Ather going for IPO?
Yes, Ather Energy has officially launched its much-anticipated IPO in 2025. Backed by Hero MotoCorp and Tiger Global, Ather aims to capitalize on the booming electric vehicle (EV) market in India with this major public offering.
What is the IPO listing price?
The Ather Energy IPO is priced between ₹304 and ₹321 per share. Retail investors applying at the cut-off price of ₹321 maximize their chances of allotment, especially in case of oversubscription.
Is aether IPO good?
The Ather IPO offers an exciting opportunity to invest in a premium E2W brand leading India’s EV revolution. With strong institutional backing, innovative products, and a growing EV market, Ather’s prospects look promising for long-term investors. However, high losses, debt, and intense competition make it a higher-risk, higher-reward bet.
What is the GMP of Ather Energy IPO?
As of April 29, 2025, the Grey Market Premium (GMP) for Ather Energy IPO is around ₹5 per share. This reflects cautious optimism among investors, with a modest premium over the upper price band of ₹321.
