Ather Energy, the Bengaluru-based electric two-wheeler manufacturer backed by Tiger Global, is set to launch its initial public offering (IPO) on Monday, April 28, 2025. The company has set the price band at ₹304 to ₹321 per share, with each equity share having a face value of Re 1.
The public issue will remain open for three days, closing on Wednesday, April 30. Ahead of the main bidding phase, Ather Energy will allocate shares to anchor investors on Friday, April 25.
Retail investors can place bids starting with a minimum of 46 shares, and in multiples thereof. The IPO allocation has been structured across different investor categories:
75% reserved for Qualified Institutional Buyers (QIBs)
15% reserved for Non-Institutional Investors (NIIs)
10% reserved for Retail Individual Investors (RIIs)
Additionally, Ather Energy employees are eligible for a ₹30 per share discount on up to 1 lakh shares reserved for them.
The basis of allotment is expected to be finalized on Friday, May 2. Subsequently, refunds will be processed, and shares will be credited to demat accounts by Monday, May 5. The stock is likely to make its market debut on BSE and NSE on Tuesday, May 6.
Founded in Bengaluru, Ather Energy is known for designing and manufacturing electric two-wheelers, including the popular Rizta scooter. This model has played a significant role in helping the company reduce its net loss from ₹776 crore to ₹578 crore in the nine months ending December 2024.
Unlike most traditional automakers, Ather follows a vertical integration model, developing key components like:
Motor controllers
Dashboard systems
Chassis designs
These are then outsourced for mass manufacturing. However, battery packs are manufactured in-house, while other components like motors and chargers are sourced from third-party suppliers.
The Ather Energy IPO comprises two components:
Fresh issue of equity shares worth ₹2,626 crore
Offer-for-Sale (OFS) of 1.1 crore shares by existing stakeholders
Major stakeholders exiting or reducing their stakes include:
National Investment and Infrastructure Fund II
Internet Fund III Pte. Ltd
IITM Incubation Cell
Co-founders Tarun Mehta and Swapnil Jain
Ather has laid out a detailed plan for the utilization of IPO funds:
₹927 crore will be allocated to establish a new electric two-wheeler manufacturing facility in Maharashtra
₹40 crore will be used to repay existing debt
₹750 crore will go towards research and development (R&D)
₹300 crore is earmarked for brand marketing and promotional activities over the next three years
With this IPO, Ather Energy will join the ranks of other listed auto players such as:
Hero MotoCorp
TVS Motors
Bajaj Auto
Eicher Motors
It will also compete in the electric vehicle space alongside Ola Electric, which is preparing for its own listing soon.
The IPO is being managed by a group of top financial institutions, including:
Axis Capital
HSBC Securities
JM Financial
Nomura
Link Intime India has been appointed as the official registrar for the public offering.