Ather Energy, a prominent player in India’s electric two-wheeler market, has successfully raised ₹1,340 crore from anchor investors ahead of its initial public offering (IPO) scheduled for April 28, 2025. This strategic move underscores the company’s commitment to expanding its footprint in the rapidly evolving electric vehicle (EV) sector.
Anchor Investors and IPO Details
In a recent disclosure to the Bombay Stock Exchange (BSE), Ather Energy announced the allocation of 4.17 crore shares at ₹321 each—the upper limit of its price band—to 36 institutional investors. Notable participants include Custody Bank of Japan, Franklin Templeton, Abu Dhabi Investment Authority, Eastspring Investments, Morgan Stanley Investment Management, and Societe Generale. Domestic mutual funds such as PSBI Mutual Fund, Aditya Birla Sun Life MF, ICICI Prudential MF, Invesco MF, ITI MF, and Union MF also took part in this anchor round.
The ₹2,981-crore IPO comprises a fresh issue of equity shares worth ₹2,626 crore and an offer for sale (OFS) of 1.1 crore shares by promoters and existing shareholders. The price band is set between ₹304 and ₹321 per share, valuing the company at approximately ₹11,956 crore at the upper end. The public subscription window is open from April 28 to April 30, with the company’s shares expected to list on the stock exchanges on May 6. (reuters.com)
Utilization of IPO Proceeds
Ather Energy plans to deploy the capital raised through the IPO towards several strategic initiatives:
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Manufacturing Expansion: ₹927.2 crore will be allocated to establish a new electric two-wheeler manufacturing facility in Maharashtra.
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Debt Repayment: ₹40 crore is earmarked for reducing existing liabilities.
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Research and Development: ₹750 crore will be invested in enhancing R&D capabilities to drive innovation.
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Marketing Efforts: ₹300 crore is designated for scaling marketing operations to boost brand visibility and sales.
- General Corporate Purposes: The remaining funds will support various corporate activities.
These investments are planned over the fiscal years 2026 to 2028, reflecting Ather’s long-term vision for growth and market penetration. (reuters.com)
Market Position and Competitive Landscape
Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy has carved a niche in India’s premium electric scooter segment. The company’s flagship products, the Ather 450 series and the recently launched Ather Rizta, are complemented by Atherstack, a proprietary software platform offering features like navigation, ride analytics, and safety enhancements.
Despite being an early entrant, Ather faces stiff competition from larger players such as Ola Electric, TVS Motor, and Bajaj Auto. In the nine months leading up to December 2024, Ather reported a 28% increase in revenue, driven by the success of the Rizta model, which has also contributed to narrowing the company’s losses. (reuters.com)
Investor Confidence and Future Outlook
The participation of esteemed global and domestic investors in the anchor round signals strong confidence in Ather Energy’s business model and growth prospects. Backed by major stakeholders like Hero MotoCorp, which holds a 40% stake and has opted not to sell shares in the IPO, Ather is well-positioned to leverage the burgeoning demand for electric vehicles in India.
As the company embarks on this new chapter, the infusion of capital is expected to accelerate its expansion plans, enhance technological capabilities, and strengthen its competitive position in the dynamic EV market.
For more information about Ather Energy and its product offerings, visit their official website.
