IIT Madras Harvests ₹50 Crore Gain from Ather Energy's IPO Success

Image Source: The Economic Times

Ather Energy's IPO is a milestone for the electric vehicle startup as well as its early investor, IIT Madras. The institute's strategic investment in Ather Energy has yielded great returns, demonstrating the power of academic incubators in developing innovation and entrepreneurship. Following are the key highlights:

Key Highlights

Early Investment:

IIT Madras Incubation Cell (IITM IC) and IITM Rural Technology and Business Incubator (RTBI) invested in Ather Energy in its early days in 2013.
As a return for office space, guidance, and facilities, the incubators were given a 5% equity in the startup.

IPO Details:

Ather Energy's IPO will open on April 28, 2025, with a price band of ₹304 to ₹321 per share.
IIT Madras holds 15.58 lakh shares, priced at ₹50 crore at the upper price band.

Stake Sale:

IITM IC intends to sell 31,050 shares, whereas IITM RTBI will dispose off 4,191 shares under the Offer for Sale (OFS).
The realized and unrealized profits through this investment signify a return of more than 32,000%.

Effect on IIT Madras:

This IPO marks the first public listing of an IITM IC portfolio company, affirming the institute's efforts in supporting deep-tech startups.
Ather Energy's achievement reflects the strengths of IIT Madras's startup ecosystem.

Ather Energy's Growth:

Established by IIT Madras alumni, Ather Energy has emerged as a leader in India's electric two-wheeler industry.
The company deals in cutting-edge products such as the Ather 450 series and Rizta series and has a strong charging network.
This success highlights the transformative impact of academic incubators in propelling India's startup landscape and developing path-breaking innovations.

Sources: Economic Times, The Hindu Business Line, Mint