Ather Energy IPO: ₹530-crore ESOP bonanza

Ather Energy employees will have a lock-in period of a year, once the stock lists at the exchange on May 6

EV two-wheeler major Ather Energy’s IPO will unlock ₹530 crore for its 1,300 employees who are under the company’s employee stock option plan (ESOP).

The company had rolled out an ESOP in 2024 with a pool of almost 16.5 million shares, according to the red herring prospectus. The employees will have a lock-in period of a year, once the stock lists at the exchange on May 6.

Of the ₹2,626 crore to be raised, ₹927.2 crore will be allocated towards setting up a new electric two-wheeler manufacturing facility in Maharashtra. An additional ₹750 crore is earmarked for investments in research and development, while ₹300 crore will be used for marketing initiatives. The company also plans to utilise ₹40 crore for debt repayment.

Market share up

Ather held 11.5 per cent market share as of FY24, and is the third largest player by volume. Its revenue from operations was up 28.32 per cent to ₹1,578.9 crore in the three quarters of FY25 from ₹1,230.4 crore in the same period last year, as it witnessed a 45 per cent year-on-year growth in EV sales to 1.08 lakh units.

The Indian scooter market is undergoing rapid premiumisation and electrification. According to Ather Energy Co-founder Tarun Mehta, scooters accounted for 32 per cent of the two-wheeler market six-seven years ago. This figure is expected to reach 38 per cent  by the end of FY25, with annual growth of 1.5 per cent. He said that this trend will continue, with scooters comprising 45 per cent of the market within the next five years. Within scooter segment, EVs are expanding even faster, he said. According to him, 17 per cent of all scooters sold are now electric, with tier-3 cities, where EV adoption was initially slow, seeing 18-19 per cent penetration, he added.

Published on April 24, 2025