Ather Energy is planning an Initial Public Offering Ather Energy IPO. In September 2024, the company filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise approximately ₹4,500 crore (about $536 million), aiming for a valuation of $2.5 billion.
The IPO will consist of a fresh issue of shares worth ₹3,100 crore and an offer for sale of 2.20 crore existing shares.
The proceeds are intended to fund business expansion, increase production capacity, and enhance the company’s charging infrastructure.
While the exact IPO date has not been announced, reports suggest it is likely to be launched in the first half of 2025.
Ather Energy, founded in 2013, is an Indian electric vehicle manufacturer specializing in electric scooters. As of March 31, 2024, the company held approximately 11.5% of the Indian electric two-wheeler market, ranking third behind Ola Electric and TVS Motor Company.
Who is the CEO of Ather Energy?
The CEO and co-founder of Ather Energy is Tarun Mehta. He co-founded the company in 2013 with Swapnil Jain, and since then, he has been leading Ather Energy’s efforts to develop and sell electric scooters in India. Under his leadership, the company has grown to become one of the prominent players in the Indian electric vehicle market.
Who is the Ather Energy Parent Company?
Ather Energy is a subsidiary of Hero MotoCorp, one of the largest two-wheeler manufacturers in India. Hero MotoCorp owns a significant stake in Ather Energy, providing support for its electric vehicle development and expansion. This relationship helps Ather Energy leverage Hero MotoCorp’s resources, manufacturing capabilities, and distribution network in the Indian market.
Ather Energy IPO details
Ather Energy has filed for an Initial Public Offering (IPO), and here are the key details:
1. IPO Size
- Ather Energy plans to raise approximately ₹4,500 crore (about $536 million) through the IPO.
2. Composition of the IPO
- Fresh Issue: ₹3,100 crore worth of new shares will be issued by Ather Energy.
- Offer for Sale (OFS): 2.2 crore shares held by existing shareholders, such as Hero MotoCorp, will be offered for sale.
3. Use of Proceeds
- The proceeds from the IPO are intended to:
- Expand manufacturing capacity
- Fund research and development
- Build and expand the charging infrastructure
- Expand sales and marketing efforts
4. Valuation
- The company is expected to be valued at around $2.5 billion at the time of the IPO.
5. IPO Timeline
- Ather Energy filed its Draft Red Herring Prospectus (DRHP) with SEBI in September 2024.
- The IPO is expected to launch in 2025, with exact dates still to be confirmed.
6. Company Overview
- Ather Energy is a prominent electric vehicle manufacturer in India, specializing in electric two-wheelers like the Ather 450X and Ather 450 Plus.
- As of March 31, 2024, Ather Energy holds about 11.5% of the electric two-wheeler market in India.
7. Major Stakeholder
- Hero MotoCorp is a significant shareholder and the parent company of Ather Energy.
8. Key Leadership
- Tarun Mehta is the CEO and co-founder of Ather Energy. He is a key figure in the company’s journey, steering its growth in the electric vehicle industry.
- Swapnil Jain, the other co-founder, also plays an essential role in the company’s success and growth.
Ather Energy IPO GMP Today
As of December 30, 2024, the Grey Market Premium (GMP) for Ather Energy’s upcoming IPO is approximately ₹77 per share. This suggests that the shares are trading at a premium in the unofficial market, indicating strong investor interest.
The expected price band for the IPO is around ₹130 per share, though this is yet to be officially confirmed.
Ather Energy company growth
Ather Energy has witnessed significant growth since its inception in 2013. Below is a table summarizing the company’s key growth milestones and performance indicators over the years:
| Year | Milestone/Key Event | Details |
| 2013 | Founding of Ather Energy | Founded by Tarun Mehta and Swapnil Jain to focus on electric two-wheelers. |
| 2016 | Launch of Ather 450 | Ather’s first electric scooter, the Ather 450, was launched in Bangalore. |
| 2017 | Funding and Expansion | Raised initial funding from investors, including Hero MotoCorp. |
| 2018 | Ather Grid Launch | Ather launched its fast-charging infrastructure network, Ather Grid, in Bangalore. |
| 2019 | Launch of Ather 450X | Ather launched the 450X, an upgraded version with better performance and features. |
| 2020 | Expansion to Other Cities | Expanded its presence to Chennai, Hyderabad, and Mumbai. |
| 2021 | Launch of Ather 450 Plus | The Ather 450 Plus, a more affordable version of the 450X, was launched. |
| 2021 | Further Expansion of Ather Grid | Expanded the Ather Grid network to cover multiple cities in India. |
| 2022 | Increase in Production Capacity | Increased production capacity in the Hosur factory. |
| 2023 | Market Share Growth | Ather Energy had a 11.5% market share of the electric two-wheeler market in India. |
| 2024 | Company Valuation & IPO Filing | Filed for an IPO with an estimated valuation of $2.5 billion. |
| 2025 (Expected) | IPO Launch | Ather is expected to launch its IPO in 2025, raising approximately ₹4,500 crore. |
| 2025+ | Expansion Plans | Plans to expand into more cities and increase sales volume, aiming for growth in the EV market. |
Key Growth Indicators
- Electric Vehicle Market Share: Ather Energy holds approximately 11.5% of the Indian electric two-wheeler market as of 2024, with increasing adoption of its scooters.
- Charging Infrastructure: Ather Grid, with fast-charging stations across multiple cities, has played a significant role in growing the company’s reach and popularity.
- Funding: Ather has raised significant capital from investors, including Hero MotoCorp, Sequoia Capital, Tiger Global, and other private investors to fuel its expansion.
Revenue & Sales (Estimates for 2024)
- Annual Sales: Ather Energy has significantly increased its sales year-on-year, with around 60,000-70,000 units of electric scooters estimated to be sold in 2024.
- Revenue Growth: The company is seeing increased revenues from electric vehicle sales, charging infrastructure, and service offerings.
Future Outlook
- Manufacturing Capacity: Ather is expanding its production facility in Hosur to scale up manufacturing capacity and meet rising demand for electric vehicles in India.
- IPO: The upcoming IPO will provide the company with funding to further expand its operations, manufacturing capacity, and market presence.
This growth table demonstrates Ather Energy’s significant strides in the electric vehicle industry and positions the company as a key player in the Indian EV market. The expansion into new cities, product innovation, and the forthcoming IPO are all indicators of continued growth.
Conclusion
Ather Energy is one of the pioneers in India’s electric two-wheeler market, offering technologically advanced and sustainable electric scooters. With a strong focus on innovation, growth, and customer satisfaction, Ather Energy is poised to be a key player in India’s transition to electric mobility. The company’s upcoming IPO is an exciting milestone, offering investors an opportunity to be part of its future growth.
Indo Farm Equipment Limited IPO Review: Is It a Good Investment Opportunity?
Avanse Financial Services IPO: Everything You Need To Know
Disclaimer: The content on this website is intended for informational purposes only and should not be interpreted as financial or investment advice. Engaging in stock market activities involves inherent risks, and outcomes can be unpredictable. While we strive to provide accurate and up-to-date information, we do not make any guarantees regarding the completeness or reliability of the content. Any investment decisions you make should be based on your own research and consultation with a qualified financial professional. We are not responsible for any financial gains or losses resulting from actions taken based on the information provided here. Always invest wisely and at your own risk.
