If you’re following the buzz in the EV space, the Ather Energy IPO is hard to miss. Ather Energy, a leading electric two-wheeler (E2W) manufacturer in India, is hitting the public markets with a substantial IPO. In this article we would talk about Ather Energy IPO, Issue Details, Reasons to invest, Risk Factors, Grey Market Premium (GMP) and our final review and conclusion.
About Ather Energy Limited
Ather Energy Limited, founded in 2013, is a Bengaluru-based electric two-wheeler manufacturer. Known for its flagship models like the Ather 450X, the company is vertically integrated, handling everything from design and assembly to battery tech and charging infrastructure.
Their product ecosystem includes the proprietary Atherstack software and Ather Grid, a fast-charging network. As of Dec 2024, Ather operates 265 experience centres and 233 service centres across India, and has expanded into Nepal and Sri Lanka.
In FY2024 alone, they sold over 1.09 lakh electric two-wheelers.
Competitive Strengths
- Strong Brand & Premium Positioning: Ather is synonymous with premium electric scooters.
- Vertically Integrated Operations: Offers control over quality and innovation.
- Proprietary Technology Stack: 64 connected features through Atherstack.
- Pan-India Charging Network: Ather Grid is a strong moat.
- R&D Focus: Significant IP with 303 trademarks, 201 designs, and 45 patents registered.
Ather Energy IPO Details
- IPO Open Date: April 28, 2025
- IPO Close Date: April 30, 2025
- Face Value: ₹ 1 per share
- Price Band: ₹ 304 to ₹ 321 per share
- Lot Size: 46 shares
- Minimum Retail Investment: ₹ 14,766 (cut-off price)
- Total Issue Size: ₹ 2,980.76 Cr
- Fresh Issue: ₹ 2,626 Cr
- OFS: ₹ 354.76 Cr
- Listing: BSE & NSE on May 6, 2025 (tentative)
- Employee Discount: ₹ 30
Financials (in ₹ Cr)
| Period | Revenue | PAT | Assets | Net Worth |
|---|---|---|---|---|
| FY2022 | 413.8 | -344.1 | 818.6 | 224.9 |
| FY2023 | 1,801.8 | -864.5 | 1,976.8 | 613.7 |
| FY2024 | 1,789.1 | -1,059.7 | 1,913.5 | 545.9 |
| 9M FY25 | 1,617.4 | -577.9 | 2,172 | 108 |
While revenue is growing, Ather is still loss-making, indicating heavy investments in scaling and R&D.
Objects of the IPO
- Setting up a new E2W factory in Maharashtra
- Repayment of debts
- Investment in R&D
- Marketing expenses
- General corporate purposes
P/E Ratio & Peer Comparison
- Ather Energy IPO Price band: ₹ 304 – 321
- Post-issue EPS: ₹ -20.69
- Post-issue P/E: NA (as losses continue)
- Price to Book Value: 13.38
Peers like Ola Electric (private), Bajaj Auto and TVS are profitable, making Ather a high-risk investment based on current financials.
Reasons to Invest
- Entry into the Fast-Growing EV Sector: India’s EV market is projected to grow rapidly with government support and rising fuel prices.
- Strong Brand Recognition: Ather has carved a niche in the premium electric scooter market.
- Tech-Driven Company: Offers software-defined products with proprietary features.
- Expanding Market Presence: Presence in India and South Asia indicates future international potential.
- Government Incentives: The EV sector benefits from FAME II and state-level subsidies.
- Robust Infrastructure: Ather Grid and in-house battery production provide an edge.
- Backing from Hero MotoCorp: A major stakeholder lends credibility and potential synergies.
Risk Factors
- Loss-Making Business: Ather has posted consistent losses, with FY2024 PAT at -₹ 1,059.7 Cr.
- High Valuation Despite Negative Earnings: Post-issue P/E is not meaningful due to ongoing losses.
- Stiff Competition: From incumbents like Bajaj, TVS, and new-age players like Ola Electric.
- Technology Risk: The fast pace of EV innovation could make current tech obsolete.
- Capital-Intensive Model: Heavy investment needed in R&D, marketing, and capacity expansion.
- Policy Dependence: EV demand is partly driven by subsidies which may be reduced or removed.
- IPO Dilution: Post-IPO shareholding of promoters will reduce significantly.
Ather Energy IPO GMP
As of now, the GMP for Ather Energy IPO is hovering around ₹ 40-45, indicating moderate demand in the grey market.
How to Apply for Ather Energy IPO?
You can apply via:
- Net banking through ASBA
- UPI via broker apps like Zerodha, Groww, Upstox, etc.
- Ensure UPI mandate is approved by 5 PM on April 30, 2025
Should You Invest in Ather Energy IPO?
Ather Energy IPO brings the excitement of the EV revolution to the primary markets. However, it’s a classic case of a high-growth, high-burn company. Investors with high risk appetite and long-term vision may consider investing. Conservative investors might prefer to wait until Ather becomes profitable.
FAQs about Ather Energy IPO
- What is the Ather Energy IPO GMP today?
Around ₹ 40-45 based on current grey market trends. - Is Ather Energy a profitable company?
No, the company is still incurring losses. - What is the lot size and minimum investment?
Lot size is 46 shares; minimum investment is approx. ₹ 14,766. - When will Ather Energy IPO shares list?
Tentative listing date is May 6, 2025. - What are the main risks in investing in this IPO?
Loss-making company, competitive sector, high valuation. - Can I apply using UPI?
Yes, retail investors can use UPI apps for applying under ASBA. - How is Ather different from Ola Electric?
Ather emphasizes premium quality, proprietary tech, and a pan-India charging network.
Disclaimer: This article is for educational purposes only and should not be considered as investment advice. Please consult your financial advisor before investing in such IPOs.
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