Bengaluru, April 24, 2025 – Ather Energy, a leading electric two-wheeler manufacturer in India, is gearing up to become the second company in this segment to go public, following Ola Electric. The company announced its Initial Public Offering (IPO) on April 23, 2025, with a price band of ₹304-₹321 per share, aiming to raise up to ₹2,981 crore. The IPO, set to open for public subscription from April 28 to April 30, 2025, signals growing investor confidence in India’s electric vehicle (EV) market despite challenges faced by competitors.
Ather Energy IPO Details: What You Need to Know
Ather Energy’s IPO comprises a fresh issue of equity shares worth ₹2,626 crore and an Offer-for-Sale (OFS) of 1.1 crore equity shares by promoters and existing shareholders, including Tarun Sanjay Mehta, Swapnil Babanlal Jain, and investors like Caladium Investments and the National Investment and Infrastructure Fund (NIIF). The IPO will allocate 75% to qualified institutional buyers, 15% to non-institutional investors, and 10% to retail investors, with a minimum application of 46 shares costing around ₹14,766 at the upper price band.
The funds will fuel Ather’s ambitious growth plans, including:
- Establishing a new electric two-wheeler factory in Chhatrapati Sambhajinagar, Maharashtra, with production starting by May 2026 and a capacity of 0.5 million E2Ws.
- Investing in research and development (R&D) to innovate new EV platforms like Zenith for motorcycles (125-300cc segment) and EL for cost-effective scooters.
- Repaying debts and boosting marketing efforts to expand its market presence.
The IPO will list on BSE and NSE on May 6, 2025, with allotments finalized by May 1, 2025. Axis Capital, JM Financial, Nomura, and HSBC Securities are the book-running lead managers, while Link Intime India Pvt Ltd is the registrar.
Ather Energy’s Market Position and Growth Strategy
Founded in 2013 by IIT Madras graduates Tarun Mehta and Swapnil Jain, Ather Energy has emerged as India’s fourth-largest electric two-wheeler manufacturer, trailing Ola Electric, TVS Motor, and Bajaj Auto. With popular models like the Ather 450X and Ather Rizta, the company sold 109,577 units in FY24, capturing an 11.5% market share. Ather’s new Rizta scooter has opened up family-oriented markets, particularly in North and West India, with Gujarat seeing a jump to 25% market share in December 2024, up from 5% in July.
Ather’s growth strategy includes expanding its Ather Grid charging network, which offers fast-charging at 1 km/min, and scaling its manufacturing capacity. The company’s Hosur facility in Tamil Nadu currently produces 420,000 E2Ws annually, and the new Maharashtra plant will further boost output. Ather is also developing two new platforms—Zenith for electric motorcycles and EL for scooters—to target diverse segments and compete with players like Ola Electric, Revolt, and Ultraviolette.
Challenges and Opportunities in India’s EV Market
Ather’s IPO comes at a time of both opportunity and challenge in India’s EV market. Electric two-wheelers dominate EV sales, accounting for over 50% of the 20 lakh units sold in FY25, with a 21% year-on-year growth. Government policies like the Delhi EV Policy 2.0, which aims to ban new ICE two-wheeler registrations by August 2026, are driving adoption. However, Ather faces stiff competition from Bajaj Auto, which leads with a 29% market share, and TVS Motor, with 237,551 iQube units sold in FY25. Ola Electric, despite a 70% value drop since its 2024 IPO, remains a key rival with a 29.93% market share.
Ather reported a revenue of ₹1,789.1 crore in FY24 but a net loss of ₹1,059.7 crore, reflecting heavy investments in R&D and infrastructure. Despite these losses, CEO Tarun Mehta remains optimistic, citing lower total cost of ownership and ease of driving as key EV adoption drivers, even amidst global tariff concerns. “The India consumer and EV story remains unchallenged,” Mehta said, emphasizing Ather’s focus on distribution and product expansion.
Why Ather Energy’s IPO Matters
Ather Energy’s IPO signals growing investor confidence in India’s EV sector, following Ola Electric’s public listing in August 2024. Backed by Hero MotoCorp, which holds a 37.2% stake, Ather is well-positioned to capitalize on the rising demand for sustainable mobility. The company’s focus on premium positioning, in-house technology like the Atherstack software, and a robust charging ecosystem sets it apart in a competitive market.
For investors, Ather’s IPO offers a chance to tap into India’s booming EV market, projected to grow as EV penetration in two-wheelers reaches 10% by the decade’s end. However, risks remain, including market volatility, competition, and Ather’s ongoing losses. Analysts recommend a long-term investment approach given the company’s growth potential and the sector’s upward trajectory.
Conclusion
Ather Energy’s IPO, launching April 28-30, 2025, marks a significant milestone for India’s electric two-wheeler industry. With plans to expand manufacturing, innovate new products, and strengthen its market presence, Ather is poised to play a pivotal role in India’s EV revolution. As the second EV maker to go public after Ola Electric, Ather’s move reflects the sector’s maturing landscape and growing investor interest. Stay tuned for updates on Ather Energy’s IPO performance and its impact on India’s sustainable mobility future.