Ather Energy's ₹2,981 Cr IPO: Charging Ahead in India's EV Market

India’s electric mobility sector is transforming a pivotal shift, and Ather Energy is at the center of this EV segment aiming to make strides with its upcoming ₹2,981 crore IPO, the Bengaluru-based electric scooter manufacturer is set to become only the second pure-play Indian EV manufacturer to list publicly after Ola Electric’s IPO last year.

As the Ather Energy IPO date approaches, investor interest is building rapidly—not just because of the market’s appetite for clean-tech plays, but also due to the substantial gains made by the company’s early backers. 

The emerging homegrown organisation comes into electric two-wheeler (E2W) startup segment, Ather Energy IPO that opens on April 28, 2025. The company,  generally  hailed as one of the earliest torchbearers of India’s EV revolution, has yet to turn a profit since its inception in 2013. But despite mounting losses, it’s attracting strong investor interest—thanks to a solid product ecosystem, ambitious expansion plans, and the backing of marquee names like Hero MotoCorp and Tiger Global.

Company Overview 

Founded in 2013 by IIT Madras alumni Tarun Mehta and Swapnil Jain who are fond of riding and are good riders saw the lack of market for scooters and motorcycles rally,  Ather Energy entered the electric two-wheeler segment long before it became a buzzword in India. The company’s first models—the Ather 450 and its upgraded variants—450x, 450s and ritza, built a reputation for quality, performance, and innovation, despite operating in a market then dominated by petrol-powered scooters.

Over the past decade, Ather has invested heavily in R&D, developed in-house battery management systems, and built its own fast-charging infrastructure branded as "Ather Grid." These long-term bets are now paying off as the company eyes rapid scale with funds from the public market.

Ather Energy IPO Details

The Ather Energy IPO issue includes and comprises a fresh issue of ₹2,626 crore and an offer for sale (OFS) of ₹354 crore. Notably, only 12% of the total issue is being offered for sale—a reduction from earlier plans, as several shareholders chose to retain their stakes, citing confidence in the company's long-term vision.  The company has thoughtful set and fixed the Ather Energy IPO price band at ₹304 to ₹321 per share, with the issue opening on April 28, 2025, and closing on April 30, 2025. The Ather energy IPO price is kept in mind by market watchers looking for the same potential expectations for gains as early investors got. The proceeds from the fresh issue will be used primarily for setting up a new manufacturing facility in Maharashtra, expanding charging infrastructure, and supporting working capital needs.

Among them is Hero MotoCorp, Ather’s largest stakeholder with a 37% holding, which isn’t offloading a single share. This decision speaks volumes in a market that has grown increasingly wary of cash-burning startups.

The book running lead managers are appointed and guiding the public issue are some of the country’s premier investment banks: Axis Capital, HSBC Securities and Capital Markets (India), JM Financial, and Nomura Financial Advisory and Securities (India).

Ather Energy: Financial Performance

But while the long-term growth narrative remains strong, Ather’s financials reflect the uphill ride. Losses before tax reduced down and nearly widened to ₹1,059.7 crore in FY24, up from ₹864.5 crore in FY23. Revenues remained almost flat year-over-year at ₹1,753.8 crore being consistent increase performance in terms of revenue but not able to generate profits and surviving with losses from past years.The nine-month period ending December 2024 showed some improvement and bit upward marks , with revenues climbing to ₹1,578.90 crore and net loss narrowing to ₹577.90 crore from ₹776.40 crore a year earlier. Still, the company has yet to show a clear path to profitability—making this IPO a high-risk, high-reward bet for public investors.

Reinforcing the company’s Early Leadership – But Still Trailing the Giants

Ather was among the first companies to sell e-scooters in India back in 2018, but despite its innovative products and early-mover advantage, its sales volumes trail industry heavyweights such as Ola Electric, TVS Motor, and Bajaj Auto. In 2024, Ather held approximately an 11% market share with around 1.26 lakh electric scooters sold, placing it among the fourth in the segment, though it is still chasing its larger competitors.

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Notable Exits: Windfall Gains for Founders and Early Backers

One of the most distinctive stories around the Ather Energy IPO is the creation of exceptional wealth for its founders and early backers, making this not only an industrial milestone but also a landmark in Indian startup investing. Founders Tarun Mehta and Swapnil Jain are together making gains and cashing out 19.6 lakh shares—9.8 lakh each—at a weighted average acquisition cost of just ₹21.09 per share as per DRHP filed. At the upper end of the price band, this results in a windfall (more than 15x return), translating to an approximate ₹31 crore payout for each founder.

Institutional Backing  

Part of what fuels brand and investor confidence in Ather Energy IPO is the powerful roster of backers: Hero MotoCorp (with around a 37–40% stake), Tiger Global, Singapore’s GIC (through Caladium Investment), and also backed by the National Investment and Infrastructure Fund (NIIF). Hero MotoCorp, the country’s largest two-wheeler manufacturer, is not selling a single share in the offering, underscoring their belief in Ather’s long-term strategy and potential. Moreover, early investors such as Tiger Global, GIC, and NIIF have chosen to part with only a fraction of their holdings.

Other early backers enjoy similarly stellar exits

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Shareholders	No. of Shares Sold	Acquisition Cost per share (₹)	Return(%)
Caladium Investment (GIC)	6,003,460	204.24	57%
National Investment and Infrastructure Fund (NIIF)	2,634,514	183.31	74%
Tiger Global (Internet Fund III)	4,00,000	38.58	732%
IITM Incubation Cell	31,050	-	-
IITM Rural Technology & Business Incubator	4,191	8.31	3,763%

Ather Energy Share Price and Grey Market Premium (GMP)

Investor interest ahead of the IPO is already reflected in the Ather Energy GMP—the premium at which shares trade on unofficial grey markets. As of late April 2025, the GMP hovers around ₹5 above the upper end of the price band, indicating a listing price expectation of approximately ₹326 per share. This implies a modest anticipated gain of about 1.5% on listing day, suggesting measured optimism among investors given market conditions.

Currently Ather Energy shares are trading at ~₹78,000 in the Pre-IPO  market. Post-listing, the Ather Energy share price will be closely watched as it sets benchmarks for other EV startups eyeing the public markets. The company’s stock is likely to attract investors bullish on India's EV growth story, especially with Hero MotoCorp’s backing serving as a strong endorsement.

Market Perception and Dynamics 

The Ather Energy Price Band at ₹304–₹321 is both a signal and a strategic choice. It reflects the management’s realism amid volatile market sentiment and their intent to balance robust fundraising with attractive valuations for anchor and retail investors.

The Ather Energy GMP (Grey Market Premium) has trended downward, currently offering only a modest ₹5–₹7 premium over the IPO price, which translates to a potential 1–2% gain on listing—a sign that, while speculative fervor is subdued, fundamentals and long-term growth play a more central role in investor calculus. This aligns with the mood of cautious optimism on the street and distinguishes Ather’s offering from the boom-bust cycles of other recent tech IPOs.

Risks and Cautions: Not All Smooth Charging Ahead

Investors attracted to the Ather Energy IPO need a clear-eyed view of risks: the company continues to report operating losses, faces intense rivalry from deep-pocketed and established automakers, and has a sales concentration in South India that exposes it to regional volatility.

Sector-specific issues such as changes in EV subsidies or lithium-ion supply shocks add complexity. Additionally, the ending of the government’s subsidy scheme in 2026 could reshape demand dynamics. Consequently, while the Ather Energy share price may benefit from industry momentum initially, sustainable outperformance depends on how rapidly Ather scales up, reduces losses, and fends off established as well as new entrants.

Conclusion: Redemption Arc for Early Backers, Inflection Point for India’s EV Market

The Ather Energy IPO stands out as a rare multi-bagger exit story for founders and early-stage Indian startup investors. Not only does it cement Ather’s place as a technology leader and major player in India’s rapidly evolving EV sector, but it also rewards patient capital and signals public market readiness for high-growth, high-potential but loss-making ventures. 

In many ways, Ather’s IPO is not just a financial event—it’s a referendum on the sustainability of India’s startup-led EV push. The company may not yet have the market share of Ola or the profits of Bajaj, but it does have a loyal following, strong technology backbone, and some of the country’s most respected investors in its corner. The IPO, then, is less about an exit—and more about acceleration.

The company’s journey from IIT Madras incubator to a major EV pioneer embodies the new energy powering India’s automotive future.

Investors should, however, weigh the opportunity against risks intrinsic to growth-stage companies. Cautious optimism with a long-term view appears prudent for those looking to add Ather Energy shares to their portfolio.