Ather Energy to kickstart IPO on April 28

Ather Energy intends to deploy the IPO proceeds across multiple initiatives
| Photo Credit:
FRANCIS MASCARENHAS

Electric vehicle manufacturer Ather Energy has submitted its red herring prospectus (RHP) to the market regulator SEBI, marking the first step towards its initial public offering (IPO). The IPO will hit the market on April 28 and close on April 30. The company plans to raise approximately ₹2,626 crore through a fresh issuance of shares. The issue also comprises offer-for-sale from promoters and existing shareholders.

Ather intends to deploy the IPO proceeds across multiple initiatives. Of the total, ₹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.

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Tarun Sanjay Mehta, CEO and promoter, and Swapnil Babanlal Jain, co-founder and promoter, will be selling 9.8 lakh shares each. Caladium Investment Pte, National Investment and Infrastructure Fund II, IIT-Madras Incubation Cell Corporate and IITMS Rural Technology and Amit Bhatia are the other investors offloading their shares.

Hero MotoCorp to remain silent

However, Hero MotoCorp, which holds a 38.2 per cent stake in the EV startup, is not selling its stake.

The company’s revenue from operations slightly declined in FY24 to ₹1,753.8 crore compared to ₹1,780.9 crore in FY23. The drop was attributed to the reduction in the Faster Adoption and Manufacturing of Electric (FAME) subsidies, which took effect on June 1, 2023. This effectively increased the retail price of its electric two-wheelers (E2Ws), leading to a dip in sales revenue.

However, Ather’s E2W sales volume increased following the launch of new variants, including the Ather 450X (2.9 kWh), Ather 450S (its lower-priced model), and the Ather 450 Apex (its most premium model). Revenue from these new variants partially offset the decline in revenue from earlier E2W models, it said in its RHP filed with SEBI.

Ather will be the second electric two-wheeler company to go public after Ola Electric, which was listed in August 2024 with a price band of ₹72-76 per share. According to Vahan data for March 2025, Ather sold 15,446 vehicles. Bajaj Auto led the segment with 34,863 units, followed by TVS Motor at 30,454, and Ola Electric at 23,430 units.

Published on April 22, 2025