Indian electric scooter manufacturer Ather Energy has successfully closed its IPO worth 2,981 crore ₹ (approximately $354 million), marking the first major public offering of the 2025-26 financial year in India. Despite initial losses and cautious investor optimism, the IPO was fully subscribed, signaling growing confidence in electric mobility.
IPO Details
Ather Energy’s IPO was open from April 28 to April 30, 2025, with a price band of 304-321 ₹ per share. The minimum investment for retail investors was 13,984 ₹, corresponding to 46 shares. The issue included new shares worth 2,626 crore ₹ and an offer for sale (OFS) of 1.11 crore shares.
The IPO was fully subscribed, with retail investors dominating at 1.41 times subscription, while qualified institutional buyers (QIBs) joined later. The grey market premium (GMP) remained at 1 ₹, suggesting cautious investor expectations regarding listing gains.
The shares will be listed on the BSE and NSE exchanges on May 6, 2025, with allocation confirmed on May 2, 2025.
Company Background
Ather Energy was founded in 2013 by Tarun Mehta and Swapnil Jain and is a pioneer in the Indian electric vehicle (EV) market. The company specializes in developing and manufacturing electric scooters, battery systems, charging infrastructure, and software.
Its portfolio includes the Ather 450 and Ather Rizta models, which are supported by the Ather Grid fast-charging network and the Atherstack software platform, offering smart features such as connectivity and navigation.
In 2024, the company sold 109,577 scooters but reported a loss of 1,059.7 crore ₹, an increase from 864.5 crore ₹ in 2023, with revenues of 1,789.1 crore ₹ in 2024. Ather is backed by investors such as Hero MotoCorp and Tiger Global, strengthening its market position.
Market Context
The Indian IPO market is dynamic in 2025, accounting for 22% of global IPOs in the first quarter, underscoring its attractiveness. Ather Energy follows the successful market entry of Ola Electric, highlighting the potential of the Indian EV sector.
This sector is driven by government incentives, such as EV subsidies and the development of charging stations, along with growing environmental awareness. Challenges include high initial costs, inadequate infrastructure, and competition from established players like Bajaj Auto and foreign brands.
Global trends, such as Trump’s tariffs and economic uncertainty, may affect investor confidence.
Key Success Factors
Several factors could determine the success of Ather Energy’s IPO and its future performance:
- Innovation and Research: Advanced features like smart connectivity and fast charging attract tech-savvy customers.
- Government as an Ally: Subsidies and policies supporting EVs create favorable conditions for growth.
- Charging Network: The growing Ather Grid and partnerships enhance user convenience.
- Strong Brand: Ather has built a reputation in the premium EV segment, supporting market share.
Risks and Challenges
Investors should consider potential risks associated with Ather Energy’s IPO. The company continues to show significant losses, which may persist due to investments in expansion and research.
The low grey market premium (1 ₹) indicates limited expectations for listing gains, reflecting the market’s cautious stance. Competition from domestic and global EV manufacturers, as well as possible changes in government subsidies, present additional threats.
Geopolitical tensions and economic slowdowns could further weaken investor confidence and market conditions.
Outlook for Investors
Ather Energy’s IPO is a key moment for the Indian EV industry, highlighting its potential and attracting investor attention. Despite challenges such as financial losses and intense competition, Ather’s innovative products and strategic initiatives position it as a strong player in green mobility.
For investors, the IPO offers an opportunity to engage with the growing Indian EV market, albeit with the need to consider risks associated with current profitability and global uncertainties.
