Ather Energy, a leading electric two-wheeler manufacturer in India, has taken a bold step toward public markets. The company filed its Red Herring Prospectus (RHP) with the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). This much-anticipated move marks a pivotal milestone for India’s electric mobility sector, reflecting both the promise and the challenges of the evolving EV landscape.
The IPO will open for public subscription on April 28, 2025, and close on April 30, 2025. Ather plans to raise Rs 2,626 crore through a fresh issue of equity shares, alongside an Offer for Sale (OFS) involving up to 1.1 crore shares from existing shareholders. The anchor book will open on April 25. The company will list its shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with the NSE designated as the primary exchange.
Founders and Early Investors to Partially Exit
As part of the OFS, Ather’s co-founders Tarun Mehta and Swapnil Jain will each offload up to 9.8 lakh shares. Several prominent early investors have also chosen to sell a portion of their holdings. Tiger Global, Caladium Investment (a GIC entity), the National Investment and Infrastructure Fund II (NIIF), IITM Incubation Cell, and IITMS Rural Technology Fund will all participate in the OFS.
The decision to offer existing shares highlights investor appetite for partial exits in a growing but capital-intensive sector. Despite the ongoing market volatility, these investors appear confident about Ather’s long-term growth and valuation prospects.
Ather’s Shareholding Structure Revealed
According to the RHP, Hero MotoCorp holds the largest stake in Ather Energy, owning 38.19% of the company. Caladium Investment follows with 15.43%, while NIIF and Tiger Global control 14.22% and 6.56% respectively. Co-founders Mehta and Jain each retain a 6.81% share.
Hero MotoCorp’s significant holding not only reflects its early belief in Ather’s vision but also signals strategic synergy between traditional automotive giants and new-age clean mobility startups. Hero has backed Ather through multiple funding rounds and now stands to benefit significantly from the public listing.
The Numbers: Revenue Up, Losses Remain
For the fiscal year ending March 2024, Ather posted revenue of Rs 1,753 crore. However, the company also recorded a net loss of Rs 1,062 crore for the year. In the first nine months of FY25 alone, Ather sold 1,08,000 electric scooters, generating revenue of Rs 1,578.9 crore, while incurring a loss of Rs 579.6 crore.
These numbers reflect the classic high-growth, high-burn startup phase. Ather continues to invest heavily in product development, market expansion, and technology innovation. The losses, though steep, are not unexpected in the context of a rapidly scaling EV business.
IPO to Fund Expansion and R&D
Ather plans to use the proceeds from the fresh issue for three core objectives: business expansion, product development, and debt reduction. The company will channel funds into expanding its retail network, setting up new experience centers, and strengthening its supply chain. It will also invest in battery innovation, connected vehicle technologies, and software development.
Additionally, Ather aims to reduce its existing debt, thereby improving its balance sheet and positioning itself for sustainable growth post-listing. The company believes that strategic capital deployment will enhance both operational efficiency and customer experience.
A Mainboard Listing Without Profitability Norms
Ather has opted to launch its IPO under Regulation 6(2) of SEBI’s Issue of Capital and Disclosure Requirements (ICDR) regulations. This regulation allows companies that do not meet profitability criteria under Regulation 6(1) to list on the mainboard, provided they fulfill certain alternate conditions.
By choosing this route, Ather acknowledges its current loss-making status while asserting confidence in its long-term business fundamentals. SEBI’s flexible listing framework for startups enables firms like Ather to access capital markets without waiting for profitability.
Book Running Lead Managers and Institutional Support
Ather has appointed Axis Capital, HSBC Securities, JM Financial, and Nomura as Book Running Lead Managers (BRLMs) for the IPO. These top-tier institutions bring robust market expertise and global reach, ensuring broad investor participation across domestic and international categories.
The presence of credible BRLMs also suggests strong institutional interest in the offering. Given the size of the issue and the relevance of the sector, Ather expects significant participation from Qualified Institutional Buyers (QIBs), retail investors, and high-net-worth individuals.
Clean Mobility in Focus Despite Ola’s Struggles
Ather’s IPO comes at a time when the Indian EV industry continues to evolve amid mixed public market sentiment. Ola Electric, the first major EV startup to go public, has faced severe valuation corrections—losing nearly 66% of its market capitalization from its peak.
Despite Ola’s setbacks, investor interest in clean mobility remains robust. Ather stands out due to its strong focus on product quality, customer experience, and ecosystem development. The company built a loyal community around its flagship models like the 450X and consistently ranked high on customer satisfaction.
While comparisons with Ola are inevitable, Ather has taken a different approach—prioritizing depth over breadth, engineering over hype, and controlled expansion over aggressive scale.
A New Chapter for Indian EV Startups
The public listing represents more than a funding event—it marks Ather’s transition from a startup to a publicly accountable enterprise. The move will subject the company to greater scrutiny, higher compliance standards, and more transparent operations. However, it also gives Ather the opportunity to unlock long-term value for all stakeholders—founders, investors, employees, and customers.
Ather’s journey began in 2013 when Mehta and Jain, both IIT Madras alumni, decided to build a high-performance electric scooter in India. Over the years, they navigated supply chain challenges, regulatory shifts, and intense competition. Today, Ather leads the premium e-scooter segment and has inspired an entire generation of cleantech entrepreneurs.
With this IPO, the company opens a new chapter—one that will determine how India’s startup ecosystem views public markets as a viable exit and growth pathway.
Final Thoughts
Ather Energy’s IPO filing sends a strong signal to the Indian startup ecosystem and global investors alike. The clean mobility revolution in India has reached an inflection point. As more startups enter public markets, investors will look for sustainable business models, strong unit economics, and leadership teams that can balance growth with discipline.
Ather has spent over a decade building a brand rooted in innovation, reliability, and community. As the company prepares for its public debut, it carries the hopes of India’s EV movement and the expectations of a market that believes in the future of green transport.
If Ather executes well, it won’t just raise capital—it will redefine how the world perceives Indian EV startups.