Ather Energy's ₹2,626 Crore IPO: Aiming for Expansion and Debt Reduction in EV Market

Ather Energy, a leading electric vehicle (EV) manufacturer in India, has announced its plans to raise ₹2,626 crore through an Initial Public Offering (IPO). The funds will be utilized to expand production capacity, invest in research and development, and reduce existing debt. This move positions Ather Energy as a key player in the rapidly growing EV market. Here's a detailed overview:

 

Key Highlights

 

IPO Details:

 

The IPO includes a fresh issue of ₹2,626 crore and an offer for sale (OFS) of ₹355 crore by existing shareholders.

 

The price band is set between ₹304 and ₹321 per share, with the IPO open for subscription from April 28 to April 30, 2025.

 

Strategic Goals:

 

Ather plans to use the proceeds to establish a second manufacturing facility in Chhatrapati Sambhajinagar, Maharashtra, with a capacity of one million electric two-wheelers annually.

 

The funds will also support the development of new platforms for scooters and motorcycles.

 

Market Performance:

 

Ather has shown significant growth, with an 18% increase in vehicle registrations from January to April 2025 compared to the previous year.

 

The company's new model, 'Rizta,' has contributed to its market share gains, despite operating in a highly competitive segment.

 

Financial Metrics:

 

Revenue grew by 28% year-over-year to ₹1,578.9 crore in the nine months ending December 2024.

 

Net losses have reduced to ₹577.9 crore, reflecting improved operational efficiency.

 

Shareholder Impact:

 

Post-IPO, Hero MotoCorp's stake will decrease from 38% to 31%, while the founders' stakes will reduce to 5.5% each.

 

The IPO is expected to value Ather Energy at ₹12,000 crore, signaling strong investor confidence.

 

Future Outlook:

 

Ather aims to leverage its expanded production capacity and innovative product lineup to strengthen its position in the EV market.

 

The IPO marks a significant milestone in Ather's journey toward becoming a leader in sustainable mobility.

 

This IPO not only highlights Ather Energy's growth trajectory but also underscores the increasing investor interest in India's EV sector.

 

Sources: Economic Times, Moneycontrol, Business Standard