Ather Energy, a Bengaluru-based electric scooter manufacturer, is launching its IPO from April 28 to April 30, 2025, with a price band of ₹304–₹321 per share, aiming to raise ₹2,980.76 crore through a fresh issue of ₹2,626 crore and an offer for sale (OFS) of ₹354.76 crore. Backed by Hero MotoCorp (40% stake) and Tiger Global, the company plans to utilize proceeds for a new Maharashtra EV factory, debt repayment, R&D, and marketing. Ather operates 265 experience centers across India and Nepal, competing with Ola Electric and TVS in the EV market.
₹10
₹321
₹328.00
Expert Opinions
Ather Energy IPO enters the market amid cautious investor sentiment, following a valuation cut of 44%, reflecting concerns over profitability and stiff competition. Despite a 28% revenue increase in FY24, market share remains modest at around 12%. The company is known for its premium electric scooters and robust Ather Grid charging network, with support from Hero MotoCorp.
However, financial challenges persist, with FY24 showing a loss of ₹1,060 crore, negative ROE of –1.83%, ROCE of –118.68%, and a Net Asset Value of ₹24 per share. These metrics highlight capital inefficiencies and pressure from rivals like Ola Electric and TVS. While the near-term outlook is challenging, long-term prospects may improve if Ather can scale effectively, control costs, and leverage its brand and infrastructure. Cautious optimism is advised for investors with a high-risk appetite and a long-term perspective.
Investor Considerations
Ather Energy IPO Company Performance and Fundamentals show narrowing losses (₹577.9 crore in 9M FY2025 vs. ₹1,059.7 crore in FY2024) and revenue of ₹1,617.4 crore (9M FY2025), though profitability remains distant. Sector Outlook is strong with India’s EV push, but competition is intense (Ola Electric’s 34% market share). IPO Valuation for FY2024 reveals a Price to Book Value of 13.38x, PAT Margin of -59%, and Debt/Equity ratio of 0.88, reflecting high premiums and persistent losses.
Growth Prospects include scaling its Maharashtra factory (1 million units/year), expanding charging infrastructure (140+ cities), and leveraging Hero MotoCorp’s 38.19% stake. Risk Factors cover cash burn, subsidy reliance, foreign investor outflows (~$33 billion), and execution risks amid global volatility. For the Investment Horizon, short-term investors face volatility, while long-term gains depend on breakeven (targeted by FY26) and India’s EV adoption.
| Date | GMP | Trend |
|---|---|---|
| 05 May 2025 18.25 | ₹10 | Up |
| 04 May 2025 12.08 | ₹7 | Up |
| 03 May 2025 15.09 | ₹00 | --- |
| 02 May 2025 11.04 | ₹00 | --- |
| 01 May 2025 11.20 | ₹00 | --- |
| 30 Apr 2025 10.30 | ₹00 | --- |
| 29 Apr 2025 10.13 | ₹00 | --- |
| 28 Apr 2025 20.48 | ₹00 | --- |
| 27 Apr 2025 10.28 | ₹00 | --- |
| 23 Apr 2025 10.21 | ₹00 | --- |
FAQs
The Grey Market Premium showed strong accuracy in predicting Ather Energy’s listing performance. While the GMP of ₹10 predicted a premium of 3.12% over the issue price, the stock delivered a similar gain of 2.18%. With a minimal prediction error of just 0.91%, the GMP effectively captured both the direction and approximate magnitude of the listing gains, proving to be a reliable indicator in this case.
Ather Energy IPO Current GMP is ₹10.
Ather Energy IPO Expected Returns is 3.12%.
Ather Energy IPO estimated listing price is ₹331.