Ather Energy Limited IPO: 10 Key Things to Know Before Investing

Arihant Team

4 minutes read

28 Apr 2025

Ather Energy Limited, one of India’s leading electric two-wheelers (E2W) manufacturers, is charging into the capital market with its much-awaited Initial Public Offering (IPO) worth ₹2,980.76 crore. The IPO opens on April 28, 2025, and closes on April 30, 2025. With its strong R&D focus, in-house innovation, and vertically integrated business model, Ather offers a futuristic opportunity in India’s booming EV space. Here are the 10 key things you should know before investing in the Ather Energy Limited IPO:

1. What makes Ather Energy a good opportunity?
2. What are the IPO dates, price band, and issue size?
3. What is the minimum investment for the IPO?
4. What does the company do?
5. What is the objective of the IPO?
6. How much is reserved for retail and other investors?
7. What are the key strengths and risks?
8. What is the financial performance of Ather Energy?
9. What is the allotment and listing timeline?
10. Should you invest in Ather Energy Limited IPO?

1. What makes Ather Energy a good opportunity?

Ather Energy is a pioneer in India’s electric scooter market, known for developing the country’s first connected electric scooters and its fast-charging network, Ather Grid. Its flagship Ather 450 series and the newly launched Ather Rizta serve performance-driven and family-oriented customers.

What sets Ather apart is its vertically integrated model—designing hardware, software, and key components in-house, enabling faster innovation and better cost control. With 46% of its workforce dedicated to R&D and the largest fast-charging 2w network in India, Ather is positioned as a premium EV player ready to ride the wave of electric mobility in India.

2. What are the IPO dates, price band, and issue size?

Here are the key details of the IPO:

IPO dates: April 28 – April 30, 2025
Listing date: May 6, 2025
Price band: ₹304–₹321 per share
Total issue size: ₹2,980.76 Cr
- Fresh Issue: ₹2,626.00 Cr
- Offer for Sale: ₹354.76 Cr
Face value: ₹1 per share
Lot size: 46 shares
Listing Exchange: BSE, NSE
Promoters: Tarun Sanjay Mehta, Swapnil Babanlal Jain, and Hero Motocorp Limited

3. What is the minimum investment for the IPO?

The minimum investment to apply for Ather Energy’s IPO is ₹13,984, based on the lot size of 46 shares at the lower price band of ₹304. To increase your chances of allotment, applying at the upper price band of ₹321 would require ₹14,766 for one lot.

4. What does the company do?

Founded in 2013 and headquartered in Bengaluru, Ather Energy is a trailblazer in electric mobility. It manufactures connected electric scooters and supports them with a complete ecosystem that includes:

AtherStack software and connected features
Ather Grid: India’s largest fast-charging network for two-wheelers
Smart accessories like the Halo smart helmet

With production facilities in Hosur, Tamil Nadu and a new plant in Chhatrapati Sambhajinagar, Maharashtra, Ather’s total annual production capacity is set to reach 1.42 million units. It sold over 109,000 scooters in FY24, showcasing strong demand and a growing market share.

5. What is the objective of the IPO?

The main objectives of the IPO include:

Capital expenditure for setting up an E2W factory in Maharashtra
Repayment or prepayment of certain borrowings
Investment in R&D
Marketing and brand-building initiatives
General corporate purposes

6. How much is reserved for retail and other investors?

The IPO allocation is expected to follow SEBI guidelines:

Qualified Institutional Buyers (QIBs): Up to 75%
Retail Investors: At least 10%
Non-Institutional Investors (NIIs): At least 15%

7. What are the key strengths and risks?

Strengths:

Strong R&D focus: ₹239 Cr invested in 9MFY25
Proprietary tech: Key components built in-house, improving margins
Connected platform: 69+ features via Atherstack, 86% adoption rate
High margin recurring revenue through subscriptions
Asset-light model with low working capital and cost discipline
Agile product development and fast time-to-market

Risks:

Dependence on third-party suppliers for critical EV components
Ongoing battery and range-related complaints may impact reputation
High cash burn: ₹717 Cr negative cash flow in 9MFY25
Reliance on China and South Korea for lithium-ion cells
Legal challenges, including pending FAME II refund of ₹146 Cr
High regional concentration 68% of sales from South India

8. What is the financial performance of Ather Energy?

Here’s a snapshot of Ather’s recent financials (₹ in Cr):

Period Ended	31 Dec 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	2,172.0	1,913.5	1,976.8	818.6
Revenue	1,617.4	1,789.1	1,801.8	413.8
Profit After Tax	-577.9	-1,059.7	-864.5	-344.1

While the company is yet to become profitable, its growth in revenue and expanding capacity signal potential for long-term performance as the EV market matures.

9. What is the allotment and listing timeline?

Basis of allotment: May 2, 2025
Refund initiation: May 5, 2025
Shares credited to demat accounts: May 5, 2025
Listing date: May 6, 2025

10. Should you invest in Ather Energy Limited IPO?

Ather Energy brings a strong innovation engine, a premium brand image, and a complete EV ecosystem that resonates with India’s fast-evolving mobility trends. However, investors must be mindful of their financial losses, supply chain dependencies, and unresolved regulatory issues.

If you believe in the EV revolution and are comfortable with the risks of a high-growth but loss-making company, Ather Energy IPO could be a long-term opportunity worth exploring.

Evaluate your risk appetite and investment goals carefully before participating in this IPO.