Ready for Ather Energy IPO? 10 Critical Factors to Understand Before Investing

Introduction: Why the Ather Energy IPO Matters

Hey, investor! If you’re tuned into India’s electric vehicle (EV) boom, you’ve probably heard the hype around the Ather Energy IPO. Ather Energy, the Bengaluru-based electric scooter maker, is ready to make its stock market debut with a whopping ₹2,981 crore public offer. This is no small deal—it’s the first mainboard IPO of FY26 and comes after a quiet couple of months in India’s IPO market.

Founded in 2013 by IIT Madras grads Tarun Mehta and Swapnil Jain, Ather Energy has won hearts with its tech-packed scooters like the Ather 450X and the family-oriented Rizta. But before you rush to invest in this EV trailblazer, let’s unpack the Ather Energy IPO with 10 critical factors you need to know. From dates to risks, we’ll keep it simple and conversational so you can make an informed decision. Let’s get started!

1. Ather Energy IPO Dates and Schedule

When can you get in on the Ather Energy IPO? The IPO opens for subscription on April 28, 2025, and closes on April 30, 2025. Anchor investors get a special window to bid on April 25, 2025. After the subscription period, share allotment is expected by early May, with the official listing on the BSE and NSE set for May 6, 2025.

These dates are key, so jot them down. Missing the application window could mean missing out on a potentially exciting investment opportunity.

2. Price Band of Ather Energy IPO

How much will it cost to own a slice of Ather Energy? The Ather Energy IPO has a price band of ₹304 to ₹321 per share, with a face value of ₹1 per share. This range is a bit lower than earlier rumors, which could be Ather’s way of playing it safe in a choppy market.

For retail investors, this price band means you’ll need to plan your budget carefully, especially since you can’t buy just one share. Let’s dive into the details of how to apply next.

3. Lot Size and How to Apply

Here’s the nitty-gritty of applying for the Ather Energy IPO. The lot size is 46 shares, so you’ll need to apply for at least 46 shares in one application. At the upper price band of ₹321, one lot will cost ₹14,766. Retail investors can apply for up to 13 lots (598 shares), which would require an investment of about ₹1,91,958 at the top end.

If you’re an Ather Energy employee, you get a sweet deal: a reserved portion of 1,00,000 equity shares with a ₹30 per share discount. To apply, make sure your demat account is active and linked to a UPI ID for a seamless process through platforms like Zerodha or Upstox.

4. Ather Energy IPO Size and Structure

The Ather Energy IPO is a big-ticket offer, aiming to raise ₹2,980.76 crore. Here’s how it’s structured:

• Fresh Issue: ₹2,626 crore through 81,806,854 new equity shares.
• Offer for Sale (OFS): ₹354.76 crore, with 11,051,746 shares sold by promoters and investors like the National Investment and Infrastructure Fund II and Tiger Global’s Internet Fund III.

Notably, Hero MotoCorp, which holds a 37% stake in Ather, isn’t selling any shares in this IPO. The fresh capital will fuel Ather’s ambitious growth plans, which we’ll explore soon.

5. Ather Energy’s Financial Snapshot

Before you invest in the Ather Energy IPO, let’s check out the company’s financial health. For the nine months ended December 2024, Ather Energy reported:

• Revenue: ₹1,579 crore, up 28% from the previous year.
• Net Loss: ₹578 crore, better than the ₹776 crore loss in the same period last year.

For the full FY24, Ather’s revenue was ₹1,789.1 crore, but it recorded a net loss of ₹1,059.7 crore. Like many EV startups, Ather is pouring money into R&D and expansion, which explains the losses. If you’re expecting quick profits, this might give you pause, but it’s par for the course in the EV space.

6. What Ather Energy Plans to Do with IPO Funds

What’s Ather Energy going to do with the ₹2,626 crore from the fresh issue? The Ather Energy IPO funds have some exciting uses:

• ₹927.2 crore: Building a new manufacturing plant in Maharashtra to produce over 1 million scooters and battery packs annually.
• ₹750 crore: Investing in R&D to keep Ather’s scooters cutting-edge.
• ₹300 crore: Expanding marketing to boost brand visibility.
• ₹40 crore: Clearing or reducing debt to strengthen the balance sheet.
• Remaining funds: General corporate needs, like opening new retail stores and experience centers.

These plans show Ather Energy’s big bets on scaling up and staying competitive in India’s fast-growing EV market.

7. Where Ather Energy Stands in the EV Market

Ather Energy is a strong contender in India’s electric two-wheeler market, but it’s not the leader. It’s the fourth-largest player, behind Ola Electric, TVS Motor Company, and Bajaj Auto. In FY25, Ather sold 130,945 units, holding an 11.39% market share. In the first half of April 2025, its share jumped to 16%, driven by popular models like the Ather 450 series and the new Rizta.

Ather’s edge comes from its premium, tech-savvy scooters and a growing network of experience centers. However, 68% of its FY24 sales came from South India, which shows it needs to expand its footprint to compete with Ola’s wider reach. Still, Ather’s focus on quality and innovation makes it a brand to watch.

8. Valuation and Grey Market Insights

Valuation is a big talking point for the Ather Energy IPO. Ather is aiming for a post-money valuation of ₹12,800 crore, lower than earlier estimates of ₹17,000–20,000 crore. This conservative valuation could make the IPO more appealing but also reflects caution amid global market uncertainty.

As for the Grey Market Premium (GMP), there’s no solid number yet, but chatter on X suggests investor enthusiasm. GMP can hint at potential listing-day gains, so watch for updates as the IPO date nears. A lower valuation might mean a better entry point, but it also signals tempered expectations for short-term returns.

9. Share Reservation and Allotment Process

Who gets what in the Ather Energy IPO? Here’s the allocation breakdown:

• Qualified Institutional Buyers (QIB): 75% of the net issue.
• Non-Institutional Investors (NII): 15%.
• Retail Investors: 10%.
• Employee Reservation: 1,00,000 shares with a ₹30 discount.

Retail investors have around 1,99,693 applications reserved, while small and big HNIs have 7,764 and 14,405 forms, respectively. Post-subscription, allotments will be finalized in early May, with shares credited or refunds processed shortly after. Use trusted platforms like Paytm Money or Zerodha for a hassle-free application.

10. Risks to Watch Out for in Ather Energy IPO

Every IPO has its risks, and the Ather Energy IPO is no different. Here’s what to consider:

• Ongoing Losses: Ather’s net losses (₹578 crore in the nine months to December 2024) could concern investors seeking profitability.
• Stiff Competition: Ola Electric, TVS, and Bajaj have stronger distribution and deeper pockets.
• Debt Burden: Ather had ₹1,121.6 crore in borrowings as of December 2024, though IPO funds will help reduce this.
• Market Risks: Global economic factors, like U.S. tariff changes, could affect listing performance.
• Regional Dependence: Ather’s sales are heavily concentrated in South India, limiting its national reach.

On the plus side, Ather’s premium brand, loyal customer base, and EV growth potential make it an attractive long-term play for those who believe in India’s electric future.

Conclusion: Is Ather Energy IPO Right for You?

The Ather Energy IPO is your chance to invest in a homegrown EV innovator at a pivotal moment in India’s electric mobility journey. With a reasonable price band, bold expansion plans, and a strong presence in the premium scooter segment, Ather Energy has plenty of appeal. However, its losses, competitive challenges, and market uncertainties mean it’s not a slam dunk.

If you’re in it for the long haul and excited about EVs, the Ather Energy IPO could be a great addition to your portfolio. Short-term investors should monitor GMP and market trends closer to the listing. Either way, do your research, assess your risk tolerance, and maybe chat with a financial advisor before jumping in.

So, are you ready to ride the Ather Energy IPO wave, or are you playing it safe? Let us know your thoughts, and happy investing!