Bengaluru, India — April 29, 2025
The highly anticipated initial public offering (IPO) of electric two-wheeler manufacturer Ather Energy got off to a subdued start on its opening day, with an overall subscription of just 17% by market close on Monday. While retail investors and employees showed strong interest, institutional participation remained largely absent.
According to data available as of 6:54 PM IST, the employee portion of the IPO was oversubscribed at 1.84 times, and retail individual investors subscribed to 69% of their allocation. In contrast, non-institutional investors subscribed to only 17% of their quota, and qualified institutional buyers (QIBs) did not participate on day one.
IPO Details and Fundraising Goals
Ather Energy, based in Bengaluru, has set a price band of ₹304 to ₹321 per share for the IPO. The company aims to raise ₹2,981 crore through a combination of a ₹2,626-crore fresh issue and an offer-for-sale (OFS) of 1.1 crore equity shares valued at ₹354.75 crore.
The fresh issue proceeds are expected to support capital expenditure, repay debt, and invest in future product development and charging infrastructure. The IPO is scheduled to close on May 2.
Founded in 2013 by IIT Madras alumni Tarun Mehta and Swapnil Jain, Ather Energy has emerged as a prominent player in India’s growing electric vehicle (EV) market, particularly known for its high-performance scooters such as the Ather 450X and 450S.
Mixed Investor Sentiment
The subdued institutional response on day one suggests caution among larger investors despite the company’s rapid growth and strategic backing. Ather Energy counts Hero MotoCorp, India’s largest two-wheeler manufacturer, among its major shareholders, along with investments from Flipkart co-founder Sachin Bansal.
“The early figures suggest that while retail enthusiasm is strong, larger investors may be waiting to assess broader market conditions or gain more clarity on the company’s future profitability,” said Gaurav Kapoor, head of equity research at TrustLine Holdings.
Ather reported a 4.5-fold jump in revenue to ₹1,784 crore in FY24, according to its red herring prospectus, but also posted a net loss of ₹864 crore for the same period. The company has been focusing on expanding its manufacturing capacity and network of fast-charging stations, known as Ather Grid.
Context: EV Market Dynamics
India’s EV market is undergoing a rapid transformation, spurred by government incentives under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, rising fuel costs, and increased consumer awareness. Two-wheelers make up the bulk of EV sales in the country, with brands like Ather, Ola Electric, and TVS vying for leadership in an increasingly competitive segment.
According to the Federation of Automobile Dealers Associations (FADA), EV two-wheeler sales in India grew by over 36% year-on-year in FY24, indicating strong demand momentum despite regulatory changes and subsidy reductions.
Conclusion: Early Signals, Long Road Ahead
Ather Energy’s modest opening day subscription signals mixed investor sentiment amid broader market caution and a focus on financial sustainability. While strong retail and employee participation reflect brand confidence, institutional buyers may be awaiting further clarity before entering.
As the IPO progresses, investor response in the coming days will be critical in determining whether Ather’s public debut helps unlock the capital it needs to scale in India’s evolving electric mobility landscape. For stakeholders and consumers alike, the outcome could influence how startups in the clean tech and EV space approach public funding in the months ahead.