Ather IPO: In a major turn of events that promises to revolutionize the Indian electric vehicle (EV) industry. Ather Energy, one of India’s largest electric two-wheeler players, is ready to make its Initial Public Offering (IPO) in April 2025. Not just a watershed moment for the firm, the listing is also one for the booming electric mobility space in India.
Ather IPO Details of Ather Energy
Ather’s IPO is anticipated to fetch decent capital. With the firm issuing a new issue of around ₹3,100 crore as fresh equity. There will also be an Offer for Sale (OFS) by up to 2.2 crore shares of the company’s early investors and promoters. The largest stakeholder in Ather at 37.2% equity, Hero MotoCorp, is not taking part in the OFS.
Ather IPO Valuation and Funding Target
While Ather Energy had first set a valuation of $2 billion. The company has now revised this to around $1.2 billion. A valuation that takes into account prevailing market conditions and investor attitudes towards the EV segment. With this IPO, Ather is looking to raise $400 million (around ₹3,000 crore). It will be an important factor in driving the company’s growth initiatives, both in terms of production capacity and technology upgrades.
Ather IPO: Strategic Use of Funds
The proceeds from this public offering will be used for a number of high-priority projects. That support Ather’s long-term vision of spearheading the electric two-wheeler revolution in India. Here’s how Ather intends to use the proceeds:
- ₹927.2 crore will be utilized for setting up a world-class electric two-wheeler manufacturing unit in Maharashtra. This will also strengthen Ather’s manufacturing capacity and enable it to scale up its operations nationwide.
- ₹378.2 crore will go towards repayment of loans. Helping maintain financial health and lowering the debt burden on the company.
- ₹750 crore will be used for research and development (R&D) Enabling Ather to keep innovating and enhancing the performance and aesthetics of its electric scooters.
- ₹300 crore will be spent on building marketing initiatives. Enhancing brand awareness and consumer interaction in India’s highly competitive EV space.
Ather Energy’s Competitive Advantage
Ather Energy’s competitive positioning within the electric two-wheeler segment is significant. Although Ola Electric dominates the market share. Ather has established a niche for itself by concentrating on premium, technology-oriented electric scooters. The company now enjoys a 12.2% market share. It is a reflection of its innovative designs and better customer experience. In a market dominated by established players such as TVS Motor and Bajaj Auto. Ather’s focus on high-performance scooters and widespread charging infrastructure provides it with a significant edge.
ELCTRIK Speaks
Ather Energy’s IPO is not merely a money matter. It is a historical step ahead for India’s electric mobility industry. The world will be watching Ather’s capacity to manage competition, respond to policy changes, and its mission to develop innovative electric scooters. If it materializes, Ather’s listing could become the template for more electric vehicle companies to go public. With its futuristic strategy and emerging market traction, Ather Energy is set to spearhead the EV revolution in India.
