Ather Energy IPO
IPO Price Range: Not Announced Yet
It started operating from its mega factory in Hosur in January 2021. The size of the facility is 123,000 sq ft. The company has since then started deliveries in Mumbai, Bangalore, Ahmedabad, Pune, Chennai and Hyderabad. This facility has a capacity of manufacturing 110k scooters and 120k battery packs annually.
With the rise in consumer preferences for EV, Ather has evolved itself as the fourth-largest EV player by capturing around 11.4% market share in India. Its key range of EV scooters include Ather 450, 450 Apex and Rizta.
IPO Status
Upcoming
Ather Energy Brands, Products & Services
Ather Rizta
Ather’s family-first scooter, Rizta comes with a 159 km IDC range and a 56 L storage space. The vehicle also comes with an 8 year battery warranty.
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 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 smart helmet built with key calling, music control and other features.
| Product | Electric Scooters |
| Known For | Electric Vehicles, EV Charging Infrastructure |
| Top Products | Ather 450,450 Apex,Rizta |
Ather Energy Key Financials
Objectives of Ather Energy IPO
Shareholding Pattern
| Promoters | 100% | |
| Name | Role | Stakeholding |
| Hero MotoCorp Limited | Promoter | 37.2% |
| Tarun Sanjay Mehta | Promoter | 6.63% |
| Swapnil Babanlal Jain | Promoter | 6.63% |
Listed Competitors of Ather Energy
Ola Electric
A subsidiary of Ola, Ola Electric is an eclectic vehicle company that manufactures electric scooters and motorcycles. The company was founded in 2018 and has since then evolved to own over 35% market share of the EV market in India.
Hero MotoCorp Limited
Hero MotoCorp is one of India’s oldest motorcycle and scooter manufacturers. Built with the legacy of Hero MotoCorp, Hero Vida was founded in 2022. Due to their popularity, customers trust their EV scooters.
TVS
Founded in 1911, TVS is a multinational motorcycle manufacturer. The company exports its two-wheelers to over 60 countries. TVS introduced its EV segment TVS iQube Electric in 2020 and is now available across 20 cities in India.
Bajaj Auto Limited
Bajaj Auto is a 70 year old multinational manufacturer of motorcycles in India. In 2020, Bajaj launched Chetak Electric to make its mark in the E2W space. It has since then launched in 400+ cities.
Unlisted Competitors of Ather Energy
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 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 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 is an electric motorcycle company. The company manufactures a GPS equipped tracker, clutchless single speed transmission and more.
Strengths and Risks of Ather Energy IPO
Strengths
Despite facing intense competition from established players like Ola Electric, Ather Energy has steadily increased its market share from 7.9% in FY22 to 11.4% in FY24, reflecting its growing consumer trust and strong product differentiation.
Ather Energy earns 5% more profit on each vehicle compared to Ola Electric. While Ather sells approximately 1,10,000 units annually (one-third of Ola’s 3,30,000 units), its average selling price is higher at ₹1.59 lakh per vehicle, compared to Ola’s ₹1.52 lakh.
In pre-scaling stages, companies tend to spend heavily for future growth, Ather Energy has demonstrated better financial efficiency. Ather burned ₹1,994 crores in cumulative cash, less than half of Ola’s ₹ 4,466 crores.
Ather Energy was the first EV two-wheeler manufacturer to establish a fast-charging network in India in 2018. As of March 2024, it boasts a network of 1,973 chargers, giving it an edge in terms of network reliability.
Ather energy innovates rapidly and consistently introduces new features and products. The company saw a compounded annual growth rate of 108% from its sale of vehicles that went up to ₹1,789 crores in fiscal year 2024 from ₹413.8 crores in fiscal year 2022.
Risks
Ather Energy has consistently faced negative cash flow since inception, with a loss of ₹1,059.7 crores in FY24. This is attributed to high operating costs and heavy investments in manufacturing and distribution during its pre-scale stage.
Ola Electric continues to dominate the E2W market with a 35% market share and an impressive ₹5,009.8 crores in revenue for FY24. In contrast, Ather holds only a 12% share and generated ₹1,753.8 crores in FY24 which is around 3 times less revenue than that of Ola Electric.
India’s two-wheeler industry is highly competitive, with the top 4 players controlling 77% of market share. Ather’s ability to sustain and grow depends on its speed of innovation and market acceptance of its products.
Ather Energy relies solely on its Hosur factory in Tamil Nadu for manufacturing and testing. In FY24, the company produced 108,344 electric two-wheelers and 109,359 battery packs. Any operational disruption at this facility could severely impact their overall business operations. .
Ather previously benefited from the FAME subsidy, which expired in March 2024 and was replaced by the Electric Mobility Promotion Scheme (EMPS 2024) in April 2024. While EMPS provides financial support, its scope now includes electric three-wheelers, potentially reducing the subsidy available for electric two-wheelers.
Frequently Asked Questions of Ather Energy IPO
What is 'pre-apply' for Ather Energy IPO?
'Pre-apply' for Ather Energy IPO indicates your interest in the IPO before it opens for subscription. This ensures quick application when the IPO goes live.
What would be the listing gains on the Ather Energy IPO?
The potential listing gains on the Ather Energy 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 received the final approval of SEBI (Securities Exchange Board of India) for its IPO.
When is Ather Energy’s IPO?
The IPO date for Ather Energy is yet to be announced. It is speculated that the company will make its debut in the stock market in 2025.
Can we invest in Ather Energy?
Yes, once Ather Energy’s IPO is out, you can invest in the shares of the company.
How much stake does Hero own in Ather?
Hero Motocorp owns 37.20% stake in Ather Energy. Hero Motocorp has invested in Ather Energy in its series B and C funding round.
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 Alumni and started this company with his co-founder Swapnil Jain who is also a fellow IITian.
How many cities is Ather Energy present in?
The company has a strong dealer network with 208 Experience Centers (ECs) across 154 cities as on 31st March 2024.