Ather Energy Ltd

Ather Energy Ltd IPO

IPO Price Range: ₹304 - 321

Ather Energy is an electric vehicle company that manufactures electric motorcycles and scooters. It was founded in 2013 by two IIT Alumni, Tarun Mehta and Swapnil Jain. Headquartered in Bangalore, the company has manufacturing units in Whitefield, Bangalore, and Hosur, Tamil Nadu.

It started operating from its mega factory in Hosur in January 2021. The size of the facility is 123,000 sq ft. Since then, the company has started deliveries in Mumbai, Bangalore, Ahmedabad, Pune, Chennai, and Hyderabad.

Ather Energy IPO size is ₹2,980.8 crore, which includes a fresh issue of ₹2,626 crore and an offer for sale of ₹354.8 crore. Promoters of the company, including Tarun Mehta and Swapnil Jain, along with investors such as Caladium Investment Pte Ltd, National Investment and Infrastructure Fund II, Tiger Global, and more, are cashing out via the offer for sale. Ather Energy IPO will be open for application from April 28, 2025, to April 30, 2025. The company is expected to be valued at ~₹12,000 crore following the IPO.

Min Investment

₹14,766

IPO Size

₹2,980 Cr

IPO Status

Live

Quantity in 1 Lot

46

Max Bid allowed

13

Listing Exchange

NSE

IPO Application Timeline of Ather Energy Ltd

upcoming
Open Date28 Apr 2025
Close Date30 Apr 2025
Allotment Date2 May 2025
Listing Date6 May 2025

Key Statistics

Bid Opening DateBid Opening Date28 Apr 2025
Bid Closing DateBid Closing Date30 Apr 2025
Allotment DateAllotment Date2 May 2025
Issue SizeIssue Size₹2,980.76Cr
Quantity in 1 lotQuantity in 1 lot46

Ather Energy Ltd Brands, Products & Services

Ather Rizta

Ather Rizta

Ather’s first family-first scooter, Rtiza, comes with 159 km IDC range and a 56 L storage space. The vehicle also comes with an 8-year battery warranty.

Ather 450

Ather 450

Ather 450 is Ather Energy’s 2025 E2W. It comes with 3 modes: rain, road, and rally. It rides at a speed of 161 km IDC range. Ather 450 further comes with 450X and 450S variants.

Ather 450 Apex

Ather 450 Apex

Ather 450 Apex is Ather Energy’s latest model that goes 0 to 40 km/hr in 2.9 seconds with its zero throttle to wheel response. This EV variant also comes with Ather Halo, a smarter helmet built with key calling, music control, and other features.

ProductElectric Scooters
Known ForElectric Vehicles, EV Charging Infrastructure
Top ProductsAther 450, 450 Apex, Rizta

Ather Energy Ltd Key Financials

*Value in ₹ crore
*Value in ₹ crore
*Value in ₹ crore
Details202220232024
Total Revenue413.81801.81789.1
Total Assets818.61976.81913.5
Total Profit-344.1-864.5-1059.7

Objectives of Ather Energy Ltd IPO

1
New Manufacturing Unit: The penetration of electric two-wheeler vehicles (E2W) is expected to rise significantly from 5.1% in Fiscal 2024 to 35-40% by Fiscal 2031. Ather Energy plans to invest 927.2 crores in building a new manufacturing facility in Maharashtra to meet the increasing demand for E2W.
2
Repayment of Borrowings: Ather Energy has outstanding borrowings that they plan to repay. They intend to pre-pay or repay ₹40 crores from their IPO proceeds.
3
Research and Development: Ather Energy’s R&D expenditure in the fiscal year 2024 was ₹236.5 crores, which was 13% of its revenue from operations. The company plans to further strengthen its R&D by investing ₹750 crores in the design and development of its E2W products and software.
4
Marketing Initiatives: The company is invested in building its brand as a household name in the E2W space. They plan to focus on brand building and build a community of EV enthusiasts around the ‘Ather brand’. To achieve this, they plan on allocating ₹300 crore in marketing and brand-building expenses.

Shareholding Pattern

Promoters 51.81%
NameRoleStakeholding
Hero MotoCorpPromoter38.19%
Tarun MehtaPromoter6.81%
Swapnil JainPromoter6.81%
Caladium Investment Pte LtdCorporate Shareholder15.43%
India-Japan FundCorporate Shareholder7.45%
NII Fund IICorporate Shareholder6.77%
Tiger GlobalCorporate Shareholder6.56%
NKSquaredCorporate Shareholder2.28%
Kamath AssociatesCorporate Shareholder2.28%
Others7.42%

Unlisted Competitors of Ather Energy Ltd

Okinawa Autotech

Okinawa Autotech

Headquartered in Gurgaon, Okinawa Autotech is an electric vehicle company founded in 2015. It launched its first high-speed electric scooter in 2017 and was also the first to get the FAME subsidy in 2019.

Pure EV

Pure EV

Pure is an Indian electric vehicle company. They define PURE as power using renewable energy. The company has a dedicated EV and manufacturing facility. Apart from its presence in India, it also exports to South Asian countries, Nepal, and Bhutan.

Ampere Vehicles

Ampere Vehicles

Ampere is an Indian electric vehicle and software company. Founded in 2023 by the Renault group, Ampere Vehicles works as an autonomous company. Ampere aims to be a renowned name in the EV and software space.

Tork Motors

Tork Motors

Tork Motors is an electric motorcycle company. The company manufactures a GPS-equipped tracker, clutchless single-speed transmission, and more.

Strengths and Risks of Ather Energy Ltd IPO

Strengths

Strengths

  • Our ability to pioneer new technologies.

  • Our E2Ws are positioned at a premium price in their respective segments in the E2W market.

  • Vertically integrated approach to product design with strong in-house R&D capabilities.

  • Software defined ecosystem that drives high customer engagement and drives margins.

  • Established and scalable technology platform enabling accelerated product launches.

  • Experienced management team and long-term investors committed to strong corporate governancestandards.


Risks

Risks

  • Other than the batteries that its manufacture in-house, the company relies on its suppliers to provide all other EV components used in assembling its E2Ws in-house. Any loss of key suppliers, or any failures or refusal by them to supply such components to it could cause business disruptions.

  • The company has received some customer complaints pertaining to its products in the past. There is no assurance that the company will not receive similar complaints in the future or that its will be able to address such customer complaints in a timely manner or at all.

  • The company has incurred losses since incorporation. The company had stagnant revenue growth in Fiscal Year 2024 and loss before tax of Rs. 5,779 million and Rs. 10,597 million in the nine months ended December 31, 2024 and Fiscal Year 2024, respectively. There is no assurance that the company will be cost effective in its operations or achieve profitability in the future.

  • The company has incurred negative cash flows from operations continuously since incorporation. The company had net cash used in operating activities of Rs. 7,171 million and Rs. 2,676 million in the nine months ended December 31, 2024 and Fiscal Year 2024, respectively. Negative cash flows may adversely impact its liquidity and prospects.

  • Its limited operating history makes evaluating the company business and future prospects difficult and its historical performance may not be indicative of future performance.

  • Its future growth is dependent on the demand for and adoption of electric two-wheelers. Accordingto the CRISIL Report, the company had a 10.7% and 11.5% market share of the Indian E2W market in the nine months ended December 31, 2024 and Fiscal Year 2024, respectively. If the market does not develop as the company expect, or develops at a speed that is slower than anticipated, its business, prospects, financial condition and operating results will be affected.

  • The lithium-ion cells used in its electric two-wheelers battery packs could catch on fire or vent smoke even if properly manufactured, managed or controlled. Such instances could subject it to adverse publicity, which may impact the company brand, business, prospects, financial condition and results of operations.

  • Any disruptions in the availability and any changes in the pricing and quality of lithium-ion cells could cause significant disruptions to and adversely impact its business operations.

  • The company relies on imports from certain countries, such as China, and supplies of such imports may be disrupted by changes in government regulations or policies, deterioration in economic conditions or escalation of trade tensions.

  • There are outstanding legal proceedings against the Company, certain of its Promoters and the company Directors. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties and may adversely affect its business, cash flows and reputation.

Promoters Holding

Investors Holdings %
Tarun Sanjay Mehta6.81%
Swapnil Babanlal Jain6.81%
Hero Motocorp Ltd38.19%
Mehta Family Trust0.26%
Tarun Swarna Family Trust0.17%

Frequently Asked Questions of Ather Energy Ltd IPO

  • What is the size of the Ather Energy Ltd IPO?

    The size of the Ather Energy Ltd IPO is ₹2,980.76Cr .

  • What is 'pre-apply' for Ather Energy Ltd IPO?

    'Pre-apply' for Ather Energy Ltd IPO indicates your interest in the IPO before it opens for subscription. This ensures quick application when the IPO goes live.

  • When will my Ather Energy Ltd IPO order be placed?

    Your Ather Energy Ltd IPO order will be placed on 28 Apr 2025.

  • What are the open and close dates of the Ather Energy Ltd IPO?

    The open and close dates of the Ather Energy Ltd IPO are 28 Apr 2025 to 30 Apr 2025.

  • What is the lot size and minimum order quantity of the Ather Energy Ltd IPO?

    The lot size and minimum order quantity of the Ather Energy Ltd IPO are 46 and 46 respectively.

  • What would be the listing gains on the Ather Energy Ltd IPO?

    The potential listing gains on the Ather Energy Ltd IPO will depend on various market factors and cannot be predicted with certainty.

  • Is Ather Energy IPO coming?

    Yes, Ather Energy’s IPO is coming. The company has filed RHP with the SEBI (Securities Exchange Board of India) for its IPO.

  • When is Ather Energy’s IPO?

    The Ather Energy IPO will open for application on April 28, 2025, and will close on April 30, 2025.

  • Can we invest in Ather Energy?

    Yes, once Ather Energy’s IPO opens, you can invest in the shares of the company.

  • How much stake does Hero own in Ather?

    Hero Motocorp owns a 38.19% stake in Ather Energy. Hero Motocorp has invested in Ather Energy in its series B and C funding rounds.

  • Is Ather profitable?

    No, Ather is not profitable. Since the company started, it has heavily invested in its software, R&D, and marketing. It has a negative cash flow due to its high operating costs.

  • Who is the CEO of Ather Energy?

    Tarun Mehta is the CEO and co-founder of Ather Energy. He is an IIT alumnus and started this company with his co-founder, Swapnil Jain, who is also a fellow IITian.