Ather Energy IPO: All you need to know
Ather Energy Limited, a pioneer in India's electric two-wheeler industry, is making its debut in the stock market with an Initial Public Offering (IPO). Backed by marquee investors like Hero MotoCorp, the IPO is generating considerable buzz. Here's a breakdown of key information every investor should know.
Issue Size
The Ather Energy IPO comprises:
- Fresh Issue: Equity shares aggregating up to ₹2,626 crore (₹26,260 million).
- Offer for Sale (OFS): Up to 1.10 crore (11,051,746) equity shares by existing shareholders including promoters Tarun Mehta and Swapnil Jain, Hero MotoCorp, Caladium Investment, and others.
Price Range
The price band for the IPO is ₹304-₹321. It will be published in leading national newspapers at least two working days prior to the offer opening date.
Listing Date
The equity shares are proposed to be listed on:
- BSE Limited (BSE)
- National Stock Exchange of India Limited (NSE)
The designated stock exchange for the listing is NSE. The listing will occur on May 05, 2025.
Basis of Allotment
Allotment will be finalized as per the book building process outlined by SEBI. It will be proportionate for each investor category:
- 75% to Qualified Institutional Buyers (QIBs)
- 15% to Non-Institutional Investors (NIIs)
- 10% to Retail Individual Investors (RIIs)
The final allotment will be based on demand across these categories. The allotment will take place on May 02, 2025.
Lot Size
The minimum bid lot is 46. Retail investors can apply for shares in multiples of this lot size.
Industry Overview
The electric two-wheeler market in India is undergoing a dramatic transformation. According to a CRISIL report commissioned by Ather Energy:
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The segment is poised for exponential growth due to rising fuel prices, environmental concerns, and strong policy support.
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Government incentives such as FAME II and state-level subsidies are making EVs more accessible.
India's EV penetration in two-wheelers is expected to rise significantly, making this a high-potential sector for early investors.
About the Company
Founded in 2013, Ather Energy Limited designs, manufactures, and sells premium electric scooters and associated charging infrastructure.
Key highlights:
- Flagship products: Ather 450X and Ather 450S
- Strong in-house R&D capability
- Proprietary fast-charging network: Ather Grid
- Operations in over 100 cities with growing dealership footprint
Ather also offers software-enabled smart features, real-time diagnostics, and a connected user experience.
Strengths
1. First-Mover Advantage
Ather Energy was one of the earliest entrants in India’s premium electric two-wheeler market. This early start helped the company shape consumer perceptions, build trust, and capture a significant market share before the segment matured.
2. Strong Backing from Hero MotoCorp and Global Investors
Hero MotoCorp, one of India’s largest two-wheeler companies, is a major investor, providing strategic guidance and industry expertise. The presence of global investors like Caladium and NIIF adds financial muscle and long-term credibility.
3. Integrated Tech Ecosystem
Ather designs and controls every major component—vehicles, battery packs, and the charging network—ensuring quality, innovation, and a seamless user experience. This vertically integrated approach reduces dependence on third parties and enhances efficiency.
4. Established Brand Recall
The Ather brand is synonymous with smart, stylish, and eco-friendly mobility. Its modern product design, premium positioning, and high customer satisfaction have created a strong and loyal user base across metro and Tier-I cities.
5. Continuous Innovation
Ather constantly pushes the envelope with over-the-air software updates, real-time diagnostics, and features like ride analytics. This ensures their scooters evolve over time, giving users a tech-savvy and future-ready riding experience.
Risks
- High competition from incumbents and new EV startups.
- Capital-intensive business model, requiring ongoing investment in R&D and expansion.
- Dependence on government subsidies – changes could impact demand and margins.
- Technology risks related to battery life, charging infrastructure, and consumer adoption rates.
Final Thoughts
Ather Energy's IPO presents an opportunity to invest in a future-focused company that’s driving the EV revolution in India. While the business shows strong fundamentals and growth potential, investors must also consider the inherent risks of a first-time public issue in a fast-evolving market.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed SEBI prescribed limit. The securities are quoted as an example and not as a recommendation. SEBI Registration No-INZ000200137 Member Id NSE-08081; BSE-673; MSE-1024, MCX-56285, NCDEX-1262.
