Ather Energy IPO: 5 Key Things To Know Before Investing In EV Startup

Bengaluru-based Ather Energy, one of India’s earliest electric two-wheeler startups, is all set to hit the public markets — a major step forward not just for the company, but for India’s broader electric vehicle (EV) ecosystem. The much-anticipated initial public offering (IPO) opens on April 28, 2025, and will close on April 30.

Here’s a quick explainer for potential investors looking to size up the offering:

1. IPO price band and key details

Ather has set its IPO price band between Rs 304 and Rs 321 per share, with a face value of Re 1. The public issue includes a fresh issue of shares worth Rs 2,626 crore, along with an Offer for Sale (OFS) of 1.1 crore equity shares by existing stakeholders. The total issue size is pegged at Rs 2,981 crore.

In the grey market, Ather’s shares are commanding a premium of Rs 17, reflecting an expected 5.3% listing gain based on the upper end of the price band. For the uninitiated, Grey Market Premium (GMP) indicates investor sentiment in the unofficial market ahead of a stock's official listing.

2.  Deployment of IPO proceeds

Ather plans to deploy the fresh proceeds across several key areas:
a) establishing a new manufacturing facility in Maharashtra ,
b) repaying outstanding debt,
c) investing in R&D and innovation, and
d) enhancing marketing efforts and meeting other general corporate needs.

The expansion is expected to boost production capacity and support the brand’s growth in both domestic and international markets.

3. Shareholding and stake sale

Co-founders Tarun Mehta and Swapnil Jain will each offload shares worth Rs 31.4 crore through the OFS. Other institutional investors including Tiger Global, GIC, NIIF, and IIT Madras will also trim their stakes. Notably, Hero MotoCorp, which holds a significant 40% share in Ather, will maintain its full holding and not participate in the sale.

Also Read: Electric two-wheeler Ather Energy files IPO papers with Sebi; eyes Rs 3,100-cr via fresh issue | Republic World

4. Financial performance 

In FY24, Ather reported revenue of Rs 1,753.8 crore, slightly lower than the previous year. However, the first nine months of FY25 brought a 28% revenue jump, reaching Rs 1,578.9 crore — driven by strong demand for its newly launched family-oriented scooter, the Rizta.

More importantly, the company’s net loss narrowed to Rs 577.9 crore, a positive sign that Ather is gradually moving toward improved financial stability.

5. Market standing and strategic outlook

Founded in 2013 by two IIT Madras alumni, Ather has built a strong brand with its performance-focused scooters like the 450X, its newly launched Rizta, and its fast-growing charging network, Ather Grid. Its customer base includes both tech-savvy early adopters and now, family-oriented buyers. That said, the road ahead won’t be easy. Ather faces fierce competition from established players like Ola Electric, TVS Motor, and Bajaj Auto — all vying for dominance in a fast-evolving market.

Ather’s IPO is more than just a capital-raising move — it's a test of investor confidence in India's EV revolution. For those betting on homegrown innovation and long-term sectoral growth, Ather offers a compelling, albeit competitive, opportunity. As always, investors are advised to weigh both the promise and the risks — from regulatory volatility to aggressive pricing by rivals — before making a move.