Electric two-wheeler major Ather Energy officially sets its IPO price band at INR 304-321 per share. This much-anticipated offering will open for public subscription on April 28 and close on April 30, 2025. At the upper band, Ather’s post-issue valuation will stand at a significant INR 11,955 crore (approximately $1.4 billion). The IPO consists of a fresh issue of shares worth INR 2,626 crore and an offer for sale (OFS) of up to 1.1 crore equity shares, which translates to around INR 354.76 crore. Founders Tarun Mehta and Swapnil Jain, along with prominent investors like Caladium Investment and Tiger Global, are among the stakeholders offloading shares in the OFS component. However, Hero MotoCorp, the largest stakeholder with a 38.19% stake, has opted out of the OFS.
The proceeds will go toward expanding Ather’s electric mobility ecosystem. This includes a new manufacturing facility in Maharashtra, aggressive R&D investments, marketing, and debt repayment. Founded in 2013, Ather Energy has grown into one of India’s top clean mobility startups, having recently introduced the family-friendly Rizta series and forayed into smart helmets. As Ather prepares to go public, it marks the second EV IPO in India following Ola Electric’s blockbuster listing. Ather’s financials are also showing strong momentum. Its revenue rose 28% year-on-year to INR 1,578.9 crore in 9M FY25, while losses narrowed by 26%.
This IPO could serve as a litmus test for other electric vehicle startups waiting on the sidelines. The listing will not only benchmark Ather’s journey but may also shape investor confidence in India’s evolving EV landscape. Clearly, Ather sets IPO price band at a time when the EV narrative is electrifying Indian markets.
1. Introduction to Ather’s EV Journey
1.1 Genesis and Founders of Ather Energy
Founded in 2013 by IIT Madras alumni Tarun Mehta and Swapnil Jain, Ather Energy began as an R&D-focused startup with a vision to transform India’s two-wheeler landscape. They started in Bengaluru with a mission to design and manufacture smart electric scooters that suit Indian roads, preferences, and conditions.
1.2 Revenue Model and Offerings
Ather operates on a vertically integrated model. It designs, manufactures, and sells electric scooters, charging infrastructure, and smart accessories. Ather’s main revenue streams come from:
- Direct scooter sales (Ather 450X, 450S, and 450 Apex)
- Subscription services for software upgrades and analytics
- Charging services via Ather Grid
- Sale of branded accessories like smart helmets
1.3 Key Products and Technology Focus
After establishing itself with the Ather 450 series, the company launched Rizta, a family-centric e-scooter, in 2024. Additionally, it entered the wearable tech market with smart helmets. Ather’s scooters are known for their intelligent dashboard, connected tech, battery durability, and performance suited for urban commuting.
2. Ather’s Path to IPO: Timeline and Financial Performance
2.1 Pre-IPO Funding and Valuation Shifts
Before filing its red herring prospectus (RHP) with SEBI, Ather had raised several funding rounds from marquee investors like Hero MotoCorp, Tiger Global, and Caladium Investment. Though its initial target was a $2.5 billion IPO, market corrections led to a downsized valuation of $1.4 billion.
2.2 IPO Structure and Stakeholders Involved
The IPO comprises a fresh equity issue of INR 2,626 crore and an OFS of 1.1 crore shares, totaling an IPO size of INR 2,980.76 crore. Promoters Mehta and Jain are each selling 9.80 lakh shares. Caladium is exiting 60.03 lakh shares, while other investors like IITM Incubation Cell and NIIF II are also selling.
Interestingly, Hero MotoCorp chose not to participate in the OFS. This signals long-term confidence in Ather’s prospects.
2.3 Financial Health and Market Presence
In 9M FY25, Ather posted a 28% increase in revenue at INR 1,578.9 crore, up from INR 1,230.4 crore in the same period last year. Its net loss narrowed by 26%, indicating a healthier bottom line and greater operational efficiency. Ather sold over 1.08 lakh e-scooters in this period, a clear growth from 74,000 units a year earlier.
3. Strategic Utilization of IPO Proceeds
3.1 Expansion of Manufacturing and R&D
The company plans to invest INR 927.2 crore to establish a new EV manufacturing facility in Maharashtra. This plant will help scale production and reduce unit costs.
3.2 Debt Repayment and Marketing Boost
Ather intends to use INR 40 crore for debt clearance. Additionally, INR 300 crore will go into aggressive marketing campaigns to strengthen brand visibility in competitive markets.
3.3 R&D Push for Product Differentiation
Ather will channel INR 750 crore toward research and development. The focus will remain on battery innovation, enhanced connectivity, AI-based diagnostics, and expansion of Ather Grid charging infrastructure.
4. Ather Sets IPO Price Band: Industry Reactions and Market Impact
4.1 What Analysts Say About the Valuation
Some market analysts believe the downsized valuation and sudden rush to list might hint at funding pressure. However, others argue it’s a strategic move to ride on current EV momentum.
4.2 Second EV IPO After Ola Electric
Ather’s IPO comes months after Ola Electric’s listing, which was one of India’s biggest IPOs in 2024. Ather’s successful public debut could energize other clean mobility startups such as Greaves Electric and Pure EV, both of which are also prepping for IPOs.
5. Learning for Startups and Entrepreneurs
5.1 Strategic Funding Planning: Startups must prepare for market volatility and consider listing only after careful valuation and timing analysis.
5.2 Vertical Integration Advantage: Ather’s end-to-end control over its products helps maintain quality, reduce costs, and create differentiated offerings.
5.3 Innovation and Adaptability: Ather’s constant innovation — from e-scooters to smart helmets — shows how expanding product lines can capture new user segments.
5.4 Data-Driven Scaling: From production insights to consumer data on the Ather Grid, startups can learn how intelligent data use helps optimize performance.
5.5 Investor Confidence Through Transparency: Even though Ather cut its IPO size, clear communication and a solid business plan helped retain major backers.
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