Ather Energy—the Bengaluru-based EV startup often seen as a smarter alternative to Ola Electric—is finally ready to hit the markets. Its IPO opens on April 28, 2025, and the company is looking to raise Rs 2,981 crore.
But this isn't the same aggressive, high-flying unicorn it once was. The IPO valuation is down nearly 45 per cent from its earlier target and the tone is more grounded than grand.
So is Ather now a value pick in a hype-heavy space? Or just another EV bet burning through cash?
Ather Energy IPO details at a glance
- Price band: Rs 304-Rs 321
- Lot size: 46 shares (Rs 14,766 minimum)
- Fresh issue: Rs 2,626 crore
- OFS (offer for sale): ~Rs 355 crore
- Valuation: ~Rs 11,956 crore
Where the money's going
Ather plans to use the IPO funds mainly to:
- Build a new manufacturing plant in Maharashtra (Rs 927 crore)
- Boost R&D for new models (Rs 750 crore)
- Ramp up marketing (Rs 300 crore)
- Pay off some debt (Rs 40 crore)
The business case
In the first nine months of FY25, Ather clocked:
- Revenue: Rs 1,579 crore (up 28 per cent YoY)
- Loss: Rs 578 crore (narrowed from Rs 776 crore)
The launch of its more affordable scooter, Rizta, has helped volumes. But let's be clear: Ather is still deep in the red—and needs scale, not just scooters, to get to break-even.
It currently holds about 11.5 per cent of the Indian e-scooter market, behind Ola Electric and TVS.
How it stacks up
Pros:
- Better product quality and brand recall than many rivals
- Sensible IPO pricing (especially after the 44 per cent haircut)
- Clear use of proceeds
Cons:
- Still loss-making, with no clear profit timeline
- Tough competition from cash-rich incumbents
- EV incentives and policies remain unpredictable
Final word
Our CEO Dhirendra Kumar consistently advises caution when it comes to investing in IPOs. He emphasises that IPOs are often marketed aggressively, creating a sense of urgency that may not align with the company's actual financial health or long-term prospects.
In his view, many IPOs are structured to benefit existing shareholders and promoters, rather than new investors. He also suggests that investors should not be swayed by the hype surrounding IPOs and instead focus on the company's fundamentals and long-term potential.
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