About the Company
Founded in 2013, Ather Energy Limited has emerged as one of India's leading electric two-wheeler (E2W) companies. It has set itself apart through vertical integration—designing, developing, and manufacturing electric scooters, battery packs, charging infrastructure, and its proprietary software platform, Atherstack.
The company operates a large manufacturing facility in Hosur, Tamil Nadu, with an annual installed capacity of 4,20,000 electric vehicles and 3,79,800 battery packs (as of March 2024).
Exciting opportunities ahead: Don’t forget to apply for Upcoming IPOs!
Financially, Ather Energy has been showcasing strong growth:
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Electric Two-Wheelers Sold:
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FY24: 1,09,577 units
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Nine months ending December 2024: 1,07,983 units
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Revenue Growth:
- 28% increase for the nine months ended December 31, 2024, over the previous year.
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Valuation:
- Estimated post-IPO valuation: ₹11,955.66 crore (around $1.4 billion).
The company's robust IP portfolio includes 303 registered trademarks, 201 registered designs, and 45 registered patents (as of February 2025), reinforcing its leadership in innovation.
About the Company IPO
The Ather Energy IPO opened on April 28, 2025, and will close on April 30, 2025.
Here are the key details:
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IPO Size: ₹2,981.06 crore
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Fresh Issue: ₹2,626.30 crore (8.18 crore shares)
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Offer for Sale (OFS): ₹354.76 crore (1.11 crore shares)
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Price Band: ₹304 to ₹321 per share
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Lot Size: 46 shares
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Minimum Investment:
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At ₹304/share: ₹13,984
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At ₹321/share: ₹14,766
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Face Value: ₹1 per share
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Employee Discount: ₹30 per share
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Listing Date: May 6, 2025
The IPO has already attracted attention, raising ₹1,340 crore from anchor investors before the issue opening.
About the IPO Objectives
Ather Energy plans to utilize the net proceeds from the IPO for:
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Setting up a new electric two-wheeler manufacturing facility in Maharashtra.
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Repayment or prepayment of certain borrowings.
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Investment in research and development for product innovation.
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Marketing and promotional expenses to further boost brand awareness.
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General corporate purposes to support operational and strategic needs.
Strengths of IPO
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Strong Market Presence:
Ather has a well-established network of 265 experience centers and 233 service centers across India, with international expansion in Nepal and Sri Lanka.
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Technological Edge:
With a robust proprietary platform (Atherstack) and 64 connected features, Ather stands out in product innovation.
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First-Mover Advantage in EV Charging:
Ather Grid, their proprietary public fast-charging network, offers significant infrastructure advantages over competitors.
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Growing Demand for EVs:
With government support and rising consumer interest in EVs, Ather is well-positioned to ride the electric mobility wave.
Risks of IPO
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Competitive Market:
The Indian EV two-wheeler segment is highly competitive, with players like Ola Electric, TVS, and Bajaj gearing up aggressively.
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Dependence on Government Subsidies:
Any changes in FAME (Faster Adoption and Manufacturing of Electric Vehicles) schemes could impact profitability.
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Valuation Pressure:
The IPO valuation has already seen a 44% downward revision due to volatile market conditions.
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Financial Losses:
Despite revenue growth, Ather is not consistently profitable yet, and future profitability will depend heavily on execution.
Grey Market Premium (GMP)
As of April 28, 2025, Ather Energy's IPO shares were commanding a Grey Market Premium (GMP) of ₹3.
This modest premium indicates muted but positive market sentiment toward the IPO.
How to Apply on Motilal Oswal Riise App
Applying for the Ather Energy IPO via the Motilal Oswal Riise App is simple:
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Download the Riise App from the Play Store or App Store.
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Login/Register with your mobile number and PAN.
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Go to the ‘IPO’ section on the home screen.
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Search for "Ather Energy IPO" and click "Apply."
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Enter the quantity (multiples of 46 shares) and bid at the cut-off price.
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Confirm your application and authorize payment using your UPI ID.
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Done! You’ll receive confirmation from the exchange once your application is successfully submitted.
Conclusion
The Ather Energy IPO offers an interesting opportunity to invest in a company at the forefront of India's EV revolution. With strong product innovation, expansion plans, and increasing consumer adoption, Ather could be well-positioned for future growth.
However, risks related to competition, valuation, and regulatory changes must be carefully weighed.
If you are a long-term investor with a moderate-to-high risk appetite and believe in the EV growth story, Ather Energy IPO could be worth considering.