Ather Energy IPO: Company raises ₹1,340 crore from anchor investors; check key details

Ather Energy on Friday said that it has mobilised ₹1,340 crore from anchor investors ahead of its initial public offering (IPO). The initial share sale of the electric two-wheeler company opens for public subscription on Monday, April 28.

Many key anchor investors were allocated shares, including Custody Bank of Japan, Franklin Templeton, Abu Dhabi Investment Authority, Eastspring Investments, Morgan Stanley Investment Management and Societe Generale. Additionally, PSBI Mutual Fund (MF), Aditya Birla Sun Life MF, ICICI Prudential MF, Invesco MF, Aditya Birla Sun Life Insurance, ITI MF and Union MF were also allotted the company’s shares.

The Bengaluru-based EV company said in a circular that it has allotted 4.17 crore shares to 36 funds at ₹321 apiece—which is also the upper end of the IPO’s price band. This amounts to a total of ₹1,340 crore.

This IPO will be the first mainboard public issue of the current financial year (2025-26).

Ather Energy IPO: Key highlights

• Ather Energy’s ₹2,981-crore IPO, with a price band of ₹304 to ₹321 per share, will be open for public subscription from April 28 to April 30.

• The IPO will be a combination of a fresh issue of equity shares worth ₹2,626 crore and an offer-for-sale component of 1.1 crore equity shares by company promoters and shareholders.

• The company aims to use the funds to establish an electric two-wheeler factory in Maharashtra. It also plans to use a part of the funds to repay some of its debt.

• At the upper end of the price band, the Ather Energy IPO is estimated to be at ₹2,981 crore, bringing the company’s valuation to ₹11,956 crore.

• Ather Energy will be the second two-wheeler company to go public after Ola Electric Mobility floated its ₹6,145-crore IPO in August 2024. Ola Electric’s IPO was a combination of a fresh issue of up to ₹5,500 crore and an OFS of up to 8.5 crore equity shares.

• The company has set aside 75% of the IPO for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and the remaining 10% for retail investors.

• Axis Capital, JM Financial, Nomura Financial Advisory and Securities (India), and HSBC Securities & Capital Markets are the IPO's book-running lead managers.

• Ather Energy’s shares are expected to be listed on the stock exchanges on May 6, 2025.

Ather Energy, incorporated in 2013, is a pure-play electric vehicle (EV) company that designs and develops electric two-wheelers (E2Ws), battery packs, charging infrastructure, associated software, and accessories. The company positions itself as a premium e-scooter manufacturer, as its products are priced at the higher end. It sold 109,577 E2Ws in the fiscal year 2024-25 (FY25) and 107,983 units till Q3 FY25, making it the fourth largest player in the Indian market after Ola Electric Mobility, TVS Motor, and Bajaj Auto.

Apart from its IPO plans, Ather Energy has also been expanding its research and development capabilities. The company recently announced the expansion of its R&D and testing capabilities at its product testing & validation centre.