As the Indian stock market continues its recovery, Ather Energy IPO is set to mark the first mainboard public offering of the financial year 2025-26 (FY26). The electric vehicle (EV) manufacturer is gearing up to launch its IPO on April 28, making headlines with a trimmed issue size and a focused investment plan.
Market Performance and IPO Timeline
The IPO will open for public subscription on Monday, April 28, and close on Wednesday, April 30. For anchor investors, bidding opens earlier on Friday, April 25. While the price band for the issue is yet to be announced, it is expected to be declared on April 23.
This IPO comes amid positive market sentiment and increased investor appetite for the EV segment.
Key Details of the Ather Energy IPO
Reduced Issue Size
Ather Energy has significantly reduced its IPO size, indicating a strategic recalibration.
- Fresh issue: ₹2,626 crore (earlier planned: ₹3,100 crore)
- Offer for Sale (OFS): 11.1 million shares (down from 22 million shares)
Utilization of IPO Proceeds
The company plans to allocate the raised capital toward strategic expansion and operational needs:
- ₹927.2 crore: Establishment of a new E2W (electric two-wheeler) factory in Maharashtra
- ₹750 crore: Research and development
- ₹300 crore: Marketing initiatives
- ₹40 crore: Loan repayment
- Remaining: General corporate purposes
About Ather Energy
Founded in 2013 by Tarun Sanjay Mehta and Swapnil Babanlal Jain, Ather Energy is a leading pure-play EV company specializing in electric two-wheelers. It also offers a wide ecosystem, including software, innovative accessories, and charging infrastructure.
Sales Performance
- FY24 sales: 109,577 E2Ws
- 9 months ending Dec 2024: 107,983 E2Ws
- Market share: 11.5% in both FY24 and the first nine months of FY25
- Rank: Fourth-largest E2W seller in India (CRISIL Report)
Financial Overview
While Ather Energy has shown substantial sales volume, it reports financial losses. Here's a breakdown:
Revenue
- FY24: ₹1,753.8 crore
- FY23: ₹1,780.9 crore
Revenue has remained mostly flat year-over-year.
Net Losses
- FY24: ₹1,059.7 crore
- FY23: ₹864.5 crore
- FY22: ₹344.1 crore
Losses have widened each year, reflecting high investment in expansion and innovation.
IPO Management and Listing
- Lead Managers: Axis Capital, HSBC Securities, JM Financial, and Nomura
- Registrar: MUFG Intime India
- Listing Exchanges: BSE and NSE
Summary
The Ather Energy IPO is a landmark offering in the EV sector, reflecting both growth ambitions and strategic recalibrations. With reduced issue size, targeted capital deployment, and strong sales figures, the IPO is set to attract keen interest from market watchers and investors alike.
As the first mainboard IPO of FY26, it marks a milestone for Ather and sets the tone for upcoming public issues in India's growing electric mobility space.
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