Electric 2-Wheeler Startup Ather Energy Set to Hit Indian Stock Market

India’s electric 2-wheeler startup, and Change Started Green Startup of the Year 2021, Ather Energy, is set to make its stock market debut. It is the first climate-related startup from our annual listing to hit the public market space.

Bengaluru-based company has set a price band of Rs 304 to Rs 321 per share for the IPO, aims to raise Rs 2,981 crore through a combination of a Rs 2,626-crore fresh issue and an offer-for-sale of 11 million equity shares worth Rs 354.75 crore.

Ather Energy IPO will be open for public subscription from April 28 to April 30, and shares will be listed on the stock exchanges on May 6, 2025. 

This will be the second electric two-wheeler company to hit the Indian public market after Ola Electric Mobility’s IPO of Rs 6,145 crore in August last year. 

Founded by Tarun Mehta and Swapnil Jain straight out of college, Ather Energy is the flag bearer of India’s talent landscape, pioneering green solutions to power a cleaner and greener country. 

Amid environmental concerns and rising fuel costs, electric vehicles are gaining massive traction in India.

The electric vehicle (EV) industry offers a promising solution to eliminate tailpipe emissions and curb air pollution. Additionally, due to high import dependence, India’s energy security is severely impacted by price and supply shocks of crude oil in the international market, which the EV sector mitigates. 

In India, two-wheelers are a vital and easily accessible mode of transportation across urban and rural areas.

Through electric 2-wheelers (E2-W), India can potentially lower its dependence on fuel imports and create a positive impact on the environment. Compared to petrol scooters, electric 2-Ws emit significantly less emissions across their lifecycle, especially when charged from renewable energy sources.

Electric two-wheeler production in India has seen a steady rise in the last 4-5 years, largely driven by schemes and policies introduced by the government. 

In September 2024, the Indian government launched the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme to promote electric mobility in the country. 

In the 6 months from the launch of the PM E-DRIVE scheme, approximately 1 million electric 2-wheelers have been sold, with Maharashtra and Karnataka leading in sales numbers. 

Apart from supporting urban mobility, electric 2-wheelers empower small business owners, farmers, and delivery workers. With the boom in e-commerce, switching to e2Ws ensures that last-mile logistics becomes greener and more sustainable.

Ather Energy IPO Fund Utilisation

Incorporated in 2013, Ather Energy competes with automobile giants like Bajaj Auto, TVS Motors and Ola Electric. The company’s first electric 2-wheeler was the Ather 450, launched in 2018. 

Since then, it has made multiple other launches, holding a market share of more than 11% in FY24 (April 2023 – March 2024) and is among the top four players by volume. 

Ather Energy specialises in the design, development, and in-house assembly of electric scooters, battery packs, charging infrastructure, and supporting technologies.

The company has manufacturing facilities in Karnataka and Tamil Nadu, which it wants to expand to Maharashtra. About Rs 927.2 crore of the IPO money is allocated to set up this new facility. Further, Rs 750 crore will support research and development, and Rs 300 crore for marketing. 

According to the offer documents, Ather reported revenue from operations of Rs 1,753.8 crore in FY24 and Rs 1,780.9 crore in FY23. The company’s net loss was Rs 1,062.3 crore in FY24, significantly greater than Rs 863.9 crore reported in FY23. 

Wrapping Up

Ather Energy IPO is the second market listing of green companies in India this year, after solar energy company Solarium Green Energy IPO in February. In 2024, 5 companies working in the environment and sustainability space made their debut, including Ather Energy competitor Ola Electric. 

While that aside, Ather Energy’s financial performance is not something to cheer as it remains a loss-making company amidst rising competition. It will be interesting to watch how this company evolves and helps achieve the climate goals.