Ather Energy is a Bengaluru based company that designs and manufactures electric two-wheelers and other ecosystem around them, which incudes charging stations, smart dashboards, vehicle control units, proprietary software etc. Ather Energy IPO looks to raise Rs 2,981.06 crores. The issue is a combination of fresh issue aggregating to Rs 2,626.30 crores and offer for sale aggregating to Rs 354.76 crores.
| IPO opens | April 28, 2025 |
| IPO Closes | April 30, 2025 |
| IPO Size (Rs.) | ₹2,981.06 Cr |
| Breakup | fresh ₹2,626.30 Cr + OFS ₹354.76 Cr |
| Face Value: | ₹ 1 |
| IPO Price in Rs : | ₹304 to ₹321 per share |
| Minimum Lot | 46 Shares |
| Listing At | NSE , BSE (mainboard) |
| QIB | ~75 % |
| NII Quota | ~15% |
| Retail Quota | ~10% |
| BRLM | Axis Capital, HSBC Securities, JM Financial, Nomura Financial |
| Registrar | MUFG Intime India Pvt Ltd |
About Ather Energy IPO
- Ather Energy was founded in 2013 in Bangalore.
- Ather Energy introduced the Ather 450 in 2018 with a top speed of 80 kmph,
- They also introduced connected features and cloud integration through a 3G SIM card for the first time in the E2W industry in India.
- In 2024 Ather Energy launched a new range of ‘Rizta’ scooters targeting the family convenience segment. Rizta was awarded with Autocar electric 2W of the year award in Autocar Awards 2025.
- Ather Energy’s manufacturing facility is located at Hosur, Tamil Nadu.
- They are also planning to set up another manufacturing plant in Maharashtra,
- The company has built a strong dealer network with 265 Experience Centres across India as on December 31, 2024.
- The company has launched two ‘smart helmets’ under the brand ‘Halo’ with light weight version called ‘Halo Bit’. Ather sells its software and battery warranty via the Propack bundle.
Financials : Ather Energy IPO
| Particulars / Rs Cr | 2024(09) | 2023(09) | 2024(12) | 2023(12) | 2022(12) |
| Revenue from Operations | 1,578.90 | 1,230.40 | 1,753.80 | 1,780.90 | 408.9 |
| Revenue Growth (%) | 28.32% | – | -1.52% | 335.53% | – |
| EBITDA | -370 | -422.9 | -649.4 | -686.7 | -255 |
| EBITDA Margin (%) | -23.00% | -34.00% | -36.00% | -38.00% | -62.00% |
| Net Loss | -577.9 | -776.4 | -1059.7 | -864.5 | -344.1 |
| Equity Share Capital~ | 3.1 | 0 | 0 | 0 | 0 |
| Net Worth as stated | 108 | 843.5 | 545.9 | 613.7 | 224.9 |
| Total Borrowings# | 1,121.60 | 299 | 314.9 | 485.2 | 298.4 |
| NAV | 4 | 39 | 24 | 34 | 18 |
| Debt to Equity | 0.9 | 0.6 | 0.9 | 1.1 | 1.6 |
| Post issue Share Capital | 37.25 | ||||
| FV | 1 | ||||
| IPO price | 321 | ||||
| Market cap in cr. | 11957 | ||||
| Market cap / Sales | 9.72 |
Anchors: Ather Energy IPO
Ather Energy IPO raised Rs 1,340.03 crore from anchor investors. Major anchor investors who were allocated shares include Custody Bank of Japan, Franklin Templeton, Abu Dhabi Investment Authority, Eastspring Investments, Morgan Stanley Investment Management and Societe Generale. Others include PSBI Mutual Fund , Aditya Birla Sun Life MF, ICICI Prudential MF, Invesco MF, Aditya Birla Sun Life Insurance, ITI MF and Union MF etc.
Salient Points: Ather Energy IPO
- Ather IPO is first mainboard issue after lull of nearly two months. The last issue was Quality Power in end Feb 25.
- The promoters are Tarun Sanjay Mehta, Swapnil Babanlal Jain and Hero MotoCorp (HMCL). The promoters and promoter group hold an aggregate of 54.6% of the pre-offer equity share capital. Their post IPO shareholding is ~42%.
- As of Apr-Dec of fiscal 2025, Ather was 4th largest Electric 2-Wheeler manufacturer in India by sales volume , behind Ola, TVS and Bajaj.
- In fiscal 2024, Ather Energy’s sales grew by 39.3% year-on-year to cross the 1 lakh unit mark. Ather’s market share witnessed a growth of 25% year-on-year in Apr–Dec period of fiscal 2025.
- Company has heavy reliance on South India with 60% sales coming from it.
- It plans to set up a 5 lakh units capacity at a greenfield plant at Chhatrapati Sambhajinagar, Maharashtra.
- while company is witnessing good demand its capacity utilisation in only 40%.
- Ather’s has about 280 outlets which are much smaller than other players as larger players like bajaj jhas 3000+ outlets and even TVS has around 1000 outlets and Ola has 4,000 outlets. Even Greaves’ Ampere has more dealers .
- Peers:
- Due to negative EPS, P/E is not applicable for valuation.
- The offer is made at Post-issue EV/ Sales of 6.2x , The only truly comparable listed industry peer Ola Electric Mobility trades at 4.45 x its EV/ sales,
- The Company is witnessing strong demand for its family convenience product ‘Rizta’ driving near term growth and gaining market share.
- I have a neutral to slightly negative view on Ather Energy IPO. May apply in small quantities only if QIB response iw quite high towards the end. It is seeking slightly premium valuations over its only direct peer Ola electric on may apply in Hexaware Technologies IPO only if response from QIB is quite good. It appears to be a better management company with backing of Hero group though OLA electric is much bigger in terms of sales. In last quarter it has shown good sales growth in Jan, Feb and Mar 2025 as per vaahan data.
- Can be ok from a long term perspective given its focus on R&D spend and a decent track record. I still feel Competition is high in the electric two-wheeler industry and it may be difficult to take on established OEMs such as TVS Motors, Bajaj Auto.
- GMP as per social media has been moving down and is in single digits now.
- This post is exploratory and educational purposes only.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.