Ather Energy IPO: A Comprehensive Guide

Ather Energy, a prominent name in the Indian electric two-wheeler (E2W) sector, is set to launch its Initial Public Offering (IPO). This blog provides a detailed overview of the Ather Energy IPO, covering essential information for potential investors.

About Ather Energy

Established in 2013, Ather Energy specializes in designing and manufacturing electric vehicles, battery packs, and charging infrastructure in-house. As of FY24, the company has sold over 107,000 electric two-wheelers and boasts a strong presence in India, Nepal, and Sri Lanka. Their ecosystem includes Ather Grid and Atherstack, supported by manufacturing facilities in Hosur and a global portfolio of 549 IP assets. The company employs 2,454 people as of March 2024.

IPO Details

Here are the essential details of the Ather Energy IPO:

Status: Preopen
RHP: View RHP
Minimum Investment: ₹ 13,984/ 46 shares

Detail	Value
Open Date	28 Apr 2025
Close Date	30 Apr 2025
Listing Date	06 May 2025
IPO Price Range	₹ 304 to ₹ 321
IPO Size	₹ 2980.76 Cr
Listing Exchange	BSE, NSE

IPO Timeline Progress

Bidding Starts (28 Apr 2025)

Bidding Ends (30 Apr 2025)

Allotment Finalisation (02 May 2025)

Listing (06 May 2025)

Peers

Hero MotoCorp Limited
Bajaj Auto Limited
Ola Electric Mobility Limited
TVS Motors Limited
Eicher Motors Limited

Objectives of the IPO

Capex for E2W factory setup in Maharashtra.
Partial/full repayment of company borrowings.
Investment in research and development.
Marketing expenditure.
General corporate purposes.

Ather Energy IPO Size

Types	Size
Total IPO Size	₹2,980.76 Cr.
Offer For Sale	₹354.76 Cr.
Fresh Issue	₹2,626.00 Cr.

Ather Energy IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	46	₹13,984
Retail (Max)	13	598	₹181,792
S-HNI (Min)	14	644	₹195,776
S-HNI (Max)	67	3,082	₹936,928
B-HNI (Min)	68	3,128	₹950,912

Ather Energy Industry Landscape and Growth Potential

The Indian electric two-wheeler market grew 33% in FY 2023.
E2W penetration reached 5.1% in FY 2024 and could rise to 35–40% by FY 2031.
Growth is driven by rising fuel costs, government incentives like FAME II, and increasing environmental awareness.
The Indian EV market is expected to grow at a CAGR of 30–35% over the next decade.
Ather Energy stands out with premium electric scooters and smart features.
The company plans to expand into smaller cities and towns.
Ather is focused on innovation and new technologies.
The main challenge is competition from more affordable mass-market players.

Why Invest in Ather Energy IPO?

Pioneering Brand in EV Space: Ather Energy is one of the leaders in India's electric two-wheeler market, offering innovative and high-quality electric scooters with features like fast charging and smart diagnostics.
Financial Backing: The company plans to use the funds raised from the IPO for expanding production capabilities, repaying debts, and investing in R&D, strengthening its financial position.
Rising Demand for EVs: With the increasing shift towards electric mobility, Ather is well-positioned to benefit from the growing demand for electric two-wheelers, supported by government incentives and environmental awareness.
Expansion and Global Growth: Ather’s expansion into smaller Indian cities and international markets like Nepal and Sri Lanka provides additional growth potential, diversifying its revenue streams.

Ather Energy Financial Status

PROFIT AND LOSS

Revenue
EBITDA
PAT

BALANCE SHEET

Total Liabilities
Share Capital
Total Assets

Particulars (in Rs. Crores)	FY22	FY23	FY24
Revenue	413.8	801.8	789.1
EBITDA	-25.5	-68.7	-64.9
PAT	-344.1	-864.5	-1059.7
Total Assets	818.6	1,976.8	1,913.5
Share Capital	24,144	24,164	24,164
Total Borrowings	298.4	485.2	314.9
Net Cash Generated From / (used in) operating activities	-228.4	-871.3	-267.6
Net Cash Generated From / (used in) investing activities	-6.6	-135.0	-228.1
Net Cash Generated From / (used in) financing activities	230.7	131.7	633.2
Net Increase (Decrease) In Cash And Cash Equivalents	-4.3	311.1	137.5

Ather Energy IPO SWOT Analysis

	Strengths	Weaknesses
Internal Factors	First to launch smart electric scooters in India Wide charging network with over 2,500 points in 230+ cities Premium design, strong build, and tech features Heavy investment in R&D, especially in battery and software systems	Currently not profitable due to high costs Mainly operates in big cities, with less presence in smaller towns Higher priced scooters Limited brand awareness compared to bigger rivals
	Opportunities	Threats
External Factors	Fast-growing EV market due to rising fuel prices and eco-awareness Potential to expand to more countries Recurring income through software subscriptions Supportive government policies	Rising competition from both old and new EV companies Changes in government subsidies Financial pressure from expansion and R&D costs Potential for new battery and EV technologies to make current models outdated

Frequently Asked Questions (FAQs)

WHEN DOES ATHER ENERGY IPO OPEN AND CLOSE?
Ather Energy IPO opens from 28 April 2025 to 30 April 2025.
WHAT IS THE SIZE OF THE ATHER ENERGY IPO?
The size of Ather Energy IPO is ₹2,980.76 Cr.
WHAT IS THE PRICE BAND OF ATHER ENERGY IPO?
The price of Ather Energy IPO is fixed at ₹304 to ₹321 per share.
HOW TO APPLY FOR ATHER ENERGY IPO?
To apply for Ather Energy IPO:
- Login to your Demat account and select the issue in the current IPO section.
- Enter the number of lots and the price at which you wish to apply for the Ather Energy IPO.
- Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange.
You will receive a mandate notification to block funds in your UPI app.
WHAT IS THE MINIMUM LOT SIZE AND INVESTMENT REQUIRED FOR ATHER ENERGY IPO?
The minimum lot size of Ather Energy IPO is 46 shares and the investment required is ₹13,984.
WHAT IS THE ALLOTMENT DATE OF ATHER ENERGY IPO?
The share allotment date of Ather Energy IPO is 2 May 2025.
WHAT IS THE ATHER ENERGY IPO LISTING DATE?
The Ather Energy IPO will likely be listed on 6 May 2025.
WHO IS THE BOOK RUNNER FOR ATHER ENERGY IPO?
Axis Capital Limited, HSBC Securities & Capital Markets Pvt Ltd, JM Financial Limited, Nomura Financial Advisory And Securities (India) Pvt Ltd are the book running lead managers for Ather Energy IPO.
WHAT IS THE OBJECTIVE OF THE ATHER ENERGY IPO?
Ather Energy plans to utilize the raised capital from the IPO for:
1. Capex for E2W factory setup in Maharashtra.
2. Partial/full repayment of company borrowings.
3. Investment in research and development.
4. Marketing expenditure.
5. General corporate purposes.

Contact Information

ATHER ENERGY
Ather Energy Limited
3rd Floor, Tower D, IBC Knowledge Park,
#4/1 Bannerghatta Main Road,
Bangalore 560029, Karnataka, India
Phone: +91 80 6646 5750
Email: cs@atherenergy.com
Website: http://www.atherenergy.com/

ATHER ENERGY IPO REGISTER
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: atherenergy.ipo@linkintime.co.in
Website: https://linkintime.co.in/Initial_Offer/public-issues.html

ATHER ENERGY IPO LEAD MANAGER
Axis Capital Limited
HSBC Securities & Capital Markets Pvt Ltd
JM Financial Limited
Nomura Financial Advisory And Securities (India) Pvt Ltd

Conclusion

The Ather Energy IPO presents a significant opportunity to invest in a leading electric two-wheeler company poised for growth in the burgeoning Indian EV market. Potential investors should carefully consider the company's objectives, financial status, and associated risks before making an investment decision.