Ather Energy IPO: Powering India’s EV Dreams with a Historic Listing

Ather Energy Limited, the big name associated with electric scooters, is all set to list on BSE and NSE. The company held its IPO from April 28 to April 30, 2025, for subscriptions. Ather designs and manufactures electric two-wheelers, battery packs, and charging stations, with its key products being Ather 450X scooter and Ather Grid charging network. 

Ather Energy's price discovery is ₹2,981.06 crore through this IPO, which will consist of 8.18 crore fresh issue shares and 1.11 crore shares offered for sale. The proceeds will be used to set up new factories, upgrade charging infrastructure, provide working capital, and amortize certain borrowings. This will increase the pace of growth of the company and facilitate better cash flow management.

Ather Energy IPO Listing Details

The IPO price band was fixed between ₹304 and ₹321 per share with a minimum application size of 46 shares. Hence, the least investment amount for retail investors stood at ₹13,984. An upper price band application was thus suggested to many investors to improve the chances of allotment in an oversubscription situation. 

• Listing Price: Ather Energy share price opened at ₹328 on the BSE and NSE on May 6, 2025. The Ather Energy IPO, with a post-issue market cap of roughly ₹11,955.96 crores, is expected to be one of the bright spots for electric mobility and main board listings in India. 
• Investor Sentiment: Ather Energy accordingly witnessed strong institutional and retail participation. The well-established product range, robust brand recall, and growing ecosystem for EVs are cornerstones for long-term investors that wish to strike in India's burgeoning clean mobility segment.

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First-Day Trading Performance Outlook

Though exact listing numbers will be known on May 6, analysts are predicting stable first-day trading given the company’s strong brand, growing EV ecosystem, and integrated operations. However, some concerns remain around its aggressive valuation compared to ongoing losses and current financial scale.

Market Sentiment and Analysis

Since its inception in 2013, Ather Energy has gained recognition as one of the leading electric scooters in India. The entire company's operation in India consists of a completely integrated model-in-house design, battery production, software development, and a nationwide charging network. The company has established its presence across countries such as India, Nepal, and Sri Lanka, and it has hundreds of experience and service centres operating in these locations.

• Positive Investor Response: Ather's strength lies in its tech-driven product line, vertically integrated operations, and strong brand recall amongst EV buyers. The IPO is priced rather on the high side, but investors, however, remain optimistic owing to the fast-growing EV ecosystem, large manufacturing capacity, and focus on innovation.
• Anticipated Listing Performance: Ather Energy is likely to debut on stable grounds on the BSE and NSE. It is expected to stand by its products, which are future-ready and early in market leadership. The listing would bear the investor's belief in the electric mobility promise over the long term, in spite of financial losses in the near term.
   

Growth Drivers and Challenges

Ather’s growth is driven by its in-house technology, strong product design, and expanding charging network. However, continued losses and rising competition in the EV market remain key challenges.
 

Growth Drivers

• Vertically Integrated Model: In-house development of products, batteries, and software gives better control over quality and costs.
• Strong Brand Presence: Ather has built a loyal customer base with its focus on premium electric scooters.
• Expanding Charging Network: A growing public charging infrastructure supports wider adoption.
• Innovation and R&D Focus: Continuous upgrades in technology and product features keep the brand competitive.
• Supportive Market Trends: Rising demand for clean mobility and government policies favour electric vehicles.
   

Challenges

• Profitability Pressure: The company doesn't have a profit yet, which may concern some investors. 
• High Capital Expenditure: Electric Vehicle manufacturing and charging infrastructure have huge capital expenditure and working capital requirements. 
• Competition: Ola Electric, TVS, and Bajaj have stepped up the two-wheeler EV race.
• Valuation Concern: Aggressive pricing amid continuing losses may restrict any short-term upside.
• Operational Risk: Ather's vertical model permits control but also narrows risk from the environment within.

Utilisation of IPO Proceeds 

The IPO proceeds will be utilized for Ather Energy's growth on the following aspects:

• Working Capital: A good fraction will go in meeting day-to-day operational requirements and inventory movement.
• Infrastructure and Expansion: The Development of manufacturing capacity and the charging network will be funded.
• Research and Development: Investment in product upgrades, battery improvements, and software innovation.
• Debt Reduction and General Corporate Purposes: Some proceeds will help improve financial health and support business strategy and marketing.

Financial Performance of Ather Energy

Ather Energy has posted a continuous influx owing to its strong market presence:

• Revenue: ₹1,617.4 crore as on December 31, 2024, which indicates a constant requirement for electric scooters and services.
• Net profit: ₹-577.9 crore by December 31, 2024. This also indicates continued investments in expansion and R&D.
• Net Worth: Dropped from ₹613.7 crore in FY23 to ₹108 crore as of December 2024, indicating pressure on the reserves but in line with the long-term growth strategy.

The listing of Ather is an important milestone in India’s EV revolution. Ather has built a strong product ecosystem backed by robust R&D. With a nationwide presence, the company is well-positioned for long-term, sustainable growth.  However, near-term concerns, arising from losses to date, demands to raise capital, and increased competition, may inhibit short-term momentum for the stock. For long-term investors who believe in India's clean mobility future, Ather Energy's IPO is a daring but attractive bet on technology, sustainability, and innovation.