Ather Energy Limited, a prominent electric two-wheeler manufacturer based in Bengaluru, has announced its Ather Energy Limited IPO, scheduled to open for public subscription from April 28 to April 30, 2025. Anchor investors will have the opportunity to participate on April 25, 2025.
Ather Energy Limited IPO Details
- Opens for Subscription: Monday, April 28, 2025
- Closes for Subscription: Wednesday, April 30, 2025
- Anchor Investor Bidding: April 25, 2025
- Price Band: ₹304–₹321 per share
- Lot Size: 46 shares per lot
- Face Value: ₹1 per share
- Total Issue Size: Approximately ₹2,980.76 crore
- Fresh Issue: ₹2,626 crore
- Offer for Sale (OFS): Up to 1.1 crore shares by existing shareholders
- Basis of Allotment Finalization: Friday, May 2, 2025
- Refunds Initiation: Monday, May 5, 2025
- Credit of Shares to Demat Accounts: Monday, May 5, 2025
- Listing on Stock Exchanges (BSE and NSE): Tuesday, May 6, 2025
Shareholding & Offer for Sale
- Hero MotoCorp: Holds ~40% stake; not participating in OFS
- Selling Shareholders: Include Tiger Global, NIIF II, 3State Ventures Internet Fund III, IIT Madras, and company promoters Tarun Mehta and Swapnil Jain
Promoters of Ather Energy Limited
- Tarun Mehta: Co-founder and CEO of Ather Energy.
- Swapnil Jain: Co-founder of Ather Energy.
Promoters and Shareholding Details
| Promoter | Equity Shares (Fully Diluted) | % of Pre-Offer Equity | Shares Offered in IPO |
|---|---|---|---|
| Tarun Sanjay Mehta | 20,517,732 | 6.63% | 1,000,000 |
| Swapnil Babanlal Jain | 20,517,732 | 6.63% | 1,000,000 |
| Hero MotoCorp Limited | 115,083,252 | 37.2% | None |
| Total Promoter Holding | 156,118,716 | 50.47% |
| Entity | Equity Shares | % of Pre-Offer Equity |
|---|---|---|
| Mehta Family Trust | 783,000 | 0.25% |
| Tarun Swarna Family Trust | 522,000 | 0.17% |
| Swapnil Jain Family Trust | 652,500 | 0.21% |
| Jain Family Trust | 652,500 | 0.21% |
| Total Promoter Group Holding | 2,610,000 | 0.84% |
Major Shareholders
- Hero MotoCorp: Holds approximately 40.39% of Ather Energy, making it the largest shareholder. Hero MotoCorp has consistently increased its stake over time and has chosen not to sell any shares in the upcoming IPO.
- Caladium Investment Pte Ltd: An affiliate of Singapore’s GIC, owning about 15.04% of the company.
- National Investment and Infrastructure Fund (NIIF) II: Holds a significant stake, contributing to the institutional backing of Ather Energy.
- 3State Ventures Pte Ltd: Associated with Binny Bansal, co-founder of Flipkart, and is among the corporate shareholders.
- Tiger Global’s Internet Fund III: One of the early institutional investors in Ather Energy.
Use of Proceeds
The net proceeds from the fresh issue are proposed to be utilized for the following purposes:
- Capital Expenditure: ₹927.2 crore for establishing a new electric two-wheeler (E2W) manufacturing facility, referred to as “Factory 3.0,” in Chhatrapati Sambhajinagar (formerly Aurangabad), Maharashtra
- Research and Development: ₹750 crore over five years to enhance product development and innovation
- Debt Repayment: ₹378.2 crore for the repayment or pre-payment of certain borrowings
- Marketing Initiatives: ₹300 crore to strengthen brand presence and customer outreach
- General Corporate Purposes: Remaining funds to support overall business operations
Company Overview
- Founders: Tarun Mehta and Swapnil Jain
- Headquarters: Bengaluru, Karnataka, India
- Founded: 2013
- Industry: Automotive, Electric Vehicles
- Area Served: India, Nepal, Sri Lanka
- Website: atherenergy.com
- Product Portfolio: Ather designs and develops electric two-wheelers, battery packs, charging infrastructure, associated software, and accessories. Its offerings include the Ather 450 line for performance-oriented customers and the Ather Rizta line targeting family-oriented users
- Manufacturing Facilities: Currently operates a facility in Hosur, Tamil Nadu, with an annual installed capacity of 420,000 E2Ws and 379,800 battery packs. The upcoming Factory 3.0 in Maharashtra is expected to expand total production capacity to 1.42 million E2Ws upon completion
- Charging Infrastructure: Ather has established “Ather Grid,” India’s widest two-wheeler fast-charging network, comprising 1,973 fast chargers and 510 neighborhood chargers across 233 cities in India and Nepal as of March 31, 2024
Financial Performance
- Revenue: ₹1,753.8 crore in FY24, consistent with ₹1,801.8 crore in FY23
- Net Loss: ₹1,059.7 crore in FY24, an increase from ₹867.2 crore in FY23
- EBITDA: Negative ₹649.4 crore in FY24, compared to negative ₹686.7 crore in FY23
- Earnings Per Share (EPS): Negative ₹47 in FY24, slightly improved from negative ₹48 in FY23
Market Position and Risks
- Market Share: Ather held an 11.5% share of the Indian electric two-wheeler market in FY24, ranking third behind competitors like Ola Electric and TVS Motor
- Competition: Faces intense competition from larger players with broader distribution networks and aggressive pricing strategies
- Operational Risks: Relies solely on its Hosur facility for manufacturing; any disruption could significantly impact operations
- Regulatory Risks: Changes in government subsidies, such as the transition from the FAME scheme to the Electric Mobility Promotion Scheme (EMPS) in April 2024, could affect pricing and demand
- Supply Chain Risks: Dependence on the availability and pricing of lithium-ion cells poses a risk to production and cost structures
GMP of Ather Energy Limited IPO
As of Wednesday, April 23, 2025, the Grey Market Premium (GMP) for Ather Energy Limited’s IPO is approximately ₹20 per share, indicating a 6% premium over the upper end of the IPO price band of ₹321.
This suggests that in the unofficial grey market, Ather Energy’s shares are trading at around ₹341 per share.
Ather Energy Limited IPO Lot Size
| Investor Category | Number of Lots | Total Shares | Approximate Investment (₹) |
|---|---|---|---|
| Retail (Minimum) | 1 (Minimum) | 46 | ₹14,766 |
| Retail (Maximum) | Up to 13 (Maximum) | 598 | ₹1,91,958 |
| S-HNI | 14 | 644 | ₹2,06,724 |
| B-HNI | 68 | 3,128 | ₹10,04,088 |
About Ather Energy Limited
Ather Energy Limited is an Indian electric vehicle company specializing in the design, manufacture, and sale of high-performance smart electric scooters. Founded in 2013 by Tarun Mehta and Swapnil Jain, the company is headquartered in Bengaluru, Karnataka.
Products
Ather Energy’s product lineup includes:
- 450 Series: Comprising models like the Ather 450X, 450X Pro, 450S, and 450 Apex, these scooters are known for their performance and smart features.
- Ather Rizta: Launched in April 2024, the Rizta is designed as a family-oriented electric scooter, variants like Rizta S and Rizta Z with ranges of 123 km and 160 km, respectively.
Manufacturing and Infrastructure
- Production Facilities: Ather operates manufacturing plants in Whitefield, Bengaluru, and Hosur, Tamil Nadu. The Hosur facility, inaugurated in January 2021, has an annual capacity of 110,000 scooters and 120,000 battery packs.
- Charging Network: The company has established “Ather Grid,” a fast-charging network with over 1,000 charging points across more than 80 cities in India.
Additional Services
- Grid: A network of fast-charging stations compatible with Ather scooters and other electric vehicles.
- Ather Space: Experience centers operated through a licensed dealer network, allowing customers to explore and test Ather products.
Financial Information Ather Energy Limited IPO
| Metric | FY24 | FY23 | Year-over-Year Change |
|---|---|---|---|
| Revenue from Operations | ₹1,789.10 crore | ₹1,783.60 crore | +0.3% |
| Net Loss | ₹1,059.7 crore | ₹864.5 crore | +22.5% |
| Total Expenses | ₹2,674.2 crore | ₹2,666.3 crore | +0.3% |
| Cost of Materials Consumed | ₹1,579.2 crore | ₹1,538.0 crore | +2.7% |
| Employee Benefit Expenses | ₹369.2 crore | ₹334.8 crore | +10.3% |
| R&D Expenses | ₹236.5 crore | ₹191.6 crore | +23.4% |
| Advertising & Marketing | ₹90.7 crore | ₹203.8 crore | -55.5% |
Revenue and Loss Analysis
- Revenue Stability: Ather’s revenue from operations remained relatively flat, with a slight increase of 0.3% year-over-year.
- Increased Net Loss: The net loss widened by 22.5%, primarily due to increased costs and reduced government subsidies under the FAME-II scheme.
Product Sales Breakdown
In FY24, Ather Energy’s sales were distributed among its scooter models as follows:
| Model | Units Sold | Revenue Contribution |
|---|---|---|
| Ather 450X | 86,315 | ₹1,283.8 crore |
| Ather 450S | 22,712 | ₹277 crore |
| Ather 450 Apex | 550 | ₹9.1 crore |
Expense Highlights
- Cost of Materials: Increased by 2.7% year-over-year, reflecting higher production volumes.
- Employee Benefits: Saw a 10.3% rise, indicating investment in human resources.
- R&D Investment: Increased by 23.4%, underscoring a focus on innovation and product development.
- Advertising & Marketing: Expenses decreased by 55.5% as the company optimized marketing spend in anticipation of reduced consumer demand due to subsidy cuts.
Objects of the Issue of Ather Energy Limited IPO
The Objects of the Issue for Ather Energy Limited IPO are focused on supporting the company’s future growth, enhancing infrastructure, and improving operational capabilities. Here’s a detailed breakdown:
Capital Expenditure for New Manufacturing Facility
A significant portion of the IPO proceeds will be used to set up a new state-of-the-art manufacturing facility in Aurangabad, Maharashtra. This plant will help Ather scale production capacity to meet increasing demand for its electric scooters and components.
Research and Development (R&D)
Ather plans to invest in R&D activities to continue innovating on product features, battery technology, and connected vehicle platforms. This includes enhancing the performance and efficiency of existing models and working on future product lines.
Sales and Service Network Expansion
The company aims to expand its nationwide footprint by opening new experience centers (dealerships), service hubs, and increasing fast-charging infrastructure (Ather Grid) to support its growing customer base.
Prepayment or Repayment of Indebtedness
Part of the funds will be used to prepay or repay certain outstanding borrowings, thereby reducing financial liabilities and improving the balance sheet position.
General Corporate Purposes
Remaining funds will be allocated toward general corporate activities such as working capital needs, brand building, and operational flexibility.
Strengths of Ather Energy Limited IPO
1) Pioneer in India’s Electric Two-Wheeler (E2W) Market
- Ather was among the first companies to introduce electric scooters in India, launching its first model in 2018. This early entry has provided the company with valuable experience and brand recognition in the EV sector.
2) Strong Backing from Hero MotoCorp
- Hero MotoCorp, India’s leading two-wheeler manufacturer, holds approximately a 40% stake in Ather and is not selling any shares in the IPO. This continued support underscores confidence in Ather’s long-term prospects.
3) Robust R&D Capabilities
- Ather has invested significantly in research and development, leading to the creation of proprietary technologies and products. This focus on innovation positions the company well to adapt to evolving market demands.
4) Strategic Use of IPO Proceeds
- Funds raised from the IPO are earmarked for setting up a new manufacturing facility in Maharashtra, investing in R&D, expanding sales and service networks, and marketing initiatives, all aimed at fueling future growth.
Risks of Ather Energy Limited IPO
1) Continued Financial Losses
- Ather reported a net loss of ₹1,059.7 crores in FY24, up from ₹864.5 crores in FY23. Sustained losses may impact the company’s ability to achieve profitability in the near term.
2) Intense Market Competition
- The Indian E2W market is highly competitive, with established players like Ola Electric, TVS Motor, and Bajaj Auto. Ather’s premium pricing strategy may limit its market share against these competitors.
3) Dependence on Government Incentives
- Ather’s growth has been supported by government subsidies under schemes like FAME-II. Any reduction or withdrawal of such incentives could adversely affect sales and profitability.
4) Geographical Concentration
- A significant portion of Ather’s sales (68%) and experience centers (48%) are concentrated in South India, indicating a need for broader geographic diversification to mitigate regional market risks.
5) Valuation Adjustments
- The IPO valuation has been revised down by 44% from its original target, reflecting market conditions and investor sentiment. This adjustment may influence investor perceptions and demand.
Investors considering the Ather Energy IPO should weigh these strengths and risks carefully, taking into account the company’s position in the evolving electric vehicle market and the broader economic environment.
Ather Energy Limited IPO Contact Details
Registered Office
Ather Energy Limited
3rd Floor, Tower D, IBC Knowledge Park
#4/1, Bannerghatta Main Road
Bengaluru, Karnataka – 560029
Phone: +91 76766 00900
Email: customercare@atherenergy.com
Corporate Identification Number (CIN): U40100KA2013PLC093769
Corporate Office
Ather Energy Limited
13th Floor, Tower D, IBC Knowledge Park
#4/1, Bannerghatta Main Road
Bengaluru, Karnataka – 560029
Phone: +91 80 6646 5757
Email: investor@atherenergy.com
Investor Grievance Contact
Puja Aggarwal
Company Secretary
13th Floor, Tower D, IBC Knowledge Park
#4/1, Bannerghatta Main Road
Bengaluru, Karnataka – 560029
Phone: +91 80 6646 5750
Email: cs@atherenergy.com
Manufacturing Facility
Ather Energy Factory
R Agraharam, Hosur
Tamil Nadu – 635114
ArisInfra Solutions Ltd IPO 2025 – Date, Price, Lot Size, & Expert Analysis
Hexaware Technologies Ltd IPO 2025: All You Need to Know About Subscription, Price Band & Lot Size
Ajax Engineering IPO Review: A Complete Guide to the Offer
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.
