Ather Energy IPO: A Comprehensive Analysis of the 2025 Electric Mobility Giant Listing

Ather Energy Limited, one of India’s premier electric two-wheeler manufacturers, is all set to make its public debut. The Ather Energy IPO will open for subscription on 28th April 2025 and close on 30th April 2025, with the allotment finalisation scheduled for 2nd May 2025 and the tentative listing date marked as 6th May 2025 on the BSE and NSE. As a brand synonymous with innovation in electric vehicles (EVs), the IPO has garnered significant attention from institutional and retail investors alike. This article delves into everything you need to know about the Ather Energy IPO: from company fundamentals, financials, and technicals to bidding details, GMP trends, and expert insights.

Ather Energy IPO Details

• IPO Open Date: 28th April 2025
• IPO Close Date: 30th April 2025
• Allotment Finalisation: 2nd May 2025
• Refund Initiation: 5th May 2025
• Tentative Listing Date: 6th May 2025
• Issue Size: 9,28,58,599 shares (Fresh Issue + Offer for Sale)
• Issue Value: ₹2,980.76 crores
• Price Band: ₹304 – ₹321 per share
• Face Value: ₹1 per share
• Lot Size: 46 shares
• Listing Exchanges: BSE and NSE
• Registrar: Link Intime India Pvt. Ltd.
• Issue Type: Book-Built Issue

Break-up of Issue

• Fresh Issue: 8.18 crore shares, worth ₹2,626 crore
• Offer for Sale: 1.11 crore shares, worth ₹354.76 crore

Investor Quota Segregation:

• QIBs (Qualified Institutional Buyers): >75% of net offer
• NIIs (Non-Institutional Investors): <15% of net offer
• Retail Investors: <10% of net offer

Ather Energy IPO GMP (Grey Market Premium)

As of 24th April 2025, Ather Energy IPO GMP stood at ₹20 per share, suggesting a possible listing price of around ₹341 (₹321 + ₹20). However, GMP trends have been slightly volatile, indicating cautious optimism among investors:

• 22nd April 2025: GMP at ₹40 (increasing)
• 23rd April 2025: GMP at ₹20 (decreasing)
• 24th April 2025: GMP at ₹20 (stable)

Investors must understand that GMP is unofficial and can fluctuate daily based on market sentiment.

Company Overview: Ather Energy Limited

Founded in 2013, Ather Energy Limited has positioned itself at the cutting edge of electric vehicle technology in India. The company designs, develops, manufactures, and sells electric two-wheelers along with a proprietary fast-charging network known as Ather Grid and its digital ecosystem, Atherstack.

Key pillars of Ather’s strategy:

• Design and Engineering Excellence
• Development of a Proprietary Software Ecosystem
• Aggressive Expansion of Charging Infrastructure
• Focus on Premium EV Market Segments

Ather Energy Limited Financial Performance

Observations:

• Revenue dipped slightly (0.704%) in FY2024, a concern considering the EV market boom.
• Losses have widened, with PAT at ₹1,059.7 crore negative in FY24.
• Total borrowings have increased, which could impact financial flexibility.

Key Technical Metrics:

• EPS: ₹-36.46
• PE Ratio: -8.8 (Pre-IPO), expected -15.52 (Post-IPO)
• PB Ratio: 13.38
• ROE: -194%
• Market Cap: ₹11,955.66 Cr (Approx)

These figures imply high risk but also potential for high reward if operational efficiencies improve.

Peer Comparison

Insights:

• Compared to traditional players, Ather has a long way to go on profitability.
• However, Ather stands ahead of Ola Electric in certain technical aspects like product perception and tech.

Objectives of the IPO

The ₹2,980.76 crore to be raised will be utilized for:

1. Capital expenditure for setting up a new E2W manufacturing facility in Maharashtra.
2. Repayment or prepayment of borrowings.
3. Investment in research and development initiatives.
4. Enhancing the fast-charging network (Ather Grid).
5. Brand building, marketing, and promotional activities.
6. General corporate purposes.

Pros and Cons of Investing in Ather Energy IPO

Pros:

• Exposure to the fast-growing electric vehicle market.
• Brand reputation as a premium electric scooter manufacturer.
• Strong focus on innovation and integrated tech ecosystems.
• Planned expansion in production capacity.

Cons:

• Continued heavy losses.
• Negative ROE and high negative EPS.
• Increased borrowings impacting debt metrics.
• Volatility in the EV market amid regulatory and competitive challenges.

Ather Energy IPO: Bidding Details

How to Apply for Ather Energy IPO

1. Research IPO Details: Understand fundamentals, GMP, and valuations.
2. Demat Account: Ensure you have a functional Demat account.
3. Application: Log into your trading platform, go to IPO section, and apply.
4. Payment: Approve mandate for blocking funds.
5. Allotment Check: Verify allotment status on BSE or Link Intime India’s portal post 2nd May 2025.

Experts’ Take on Ather Energy IPO

Although many brokers have not yet rated Ather Energy IPO, early opinions hint at a “Cautious Buy” stance. Analysts believe:

• Short-term listing gains are likely due to GMP support.
• Medium-term investors should monitor execution risks closely.
• Long-term success hinges on profitability turnaround and EV market expansion.

Should You Invest in Ather Energy IPO?

If you are looking for listing gains and can stomach near-term volatility, Ather Energy IPO could be a reasonable bet. Conservative investors aiming for steady returns may consider waiting until post-listing financials stabilize.

Conclusion

Ather Energy stands at the crossroads of opportunity and risk. While it is armed with technological prowess and brand value, it faces financial challenges that could impact short-term performance. The Ather Energy IPO is an opportunity to invest in India’s EV revolution at a nascent stage, but investors must tread cautiously, considering the company’s persistent losses and mounting borrowings. As always, prudent research and risk assessment are key to making a wise investment decision.

Stay tuned for Ather Energy’s listing on 6th May 2025!

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