Ather Energy’s Stock Market Debut Falls Short of Expectations with Just 2% Listing Gain

Ather Energy made its much-awaited entry into the Indian stock market on Tuesday but with a lukewarm response. The company’s shares listed at ₹328 on the NSE, reflecting a marginal 2.2% premium over the IPO price of ₹321. On the BSE, it opened slightly lower at ₹326.05, a 1.6% rise from its issue price.

The ₹2,981-crore IPO, which was open from April 28 to 30, saw a subscription rate of 1.43 times, indicating restrained investor enthusiasm. Prior to listing, the issue had a grey market premium (GMP) of just 3%, a sign of muted demand.

Company Overview and Market Position

Pioneering India’s Premium EV Segment

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy has grown into one of India’s most recognised premium electric vehicle (EV) brands. Known for its vertically integrated operations, the company designs, develops, and manufactures its scooters and software in-house.

Ather also operates India’s largest EV charging infrastructure for two-wheelers, called Ather Grid, with over 2,600 fast chargers across 300+ cities.

Product Line and Market Strategy

Its current lineup includes the Ather 450 and the new Ather Rizta, a family-focused scooter designed to offer performance with practicality. These models are aimed at competing with mainstream ICE and EV scooters with a tech-forward approach.

IPO Structure and Use of Funds

Capital Allocation Plans

The IPO consisted of a fresh issue worth ₹2,626 crore and an offer-for-sale (OFS) of ₹354 crore. Proceeds from the public issue are planned for:

• Scaling manufacturing via its upcoming “Factory 3.0” in Chhatrapati Sambhajinagar

• Debt repayment

• Investments in R&D and marketing to fuel long-term growth

Financial Outlook and Industry Challenges

Despite a strong brand and infrastructure, analysts remain cautious about Ather’s financials. They cite high R&D and distribution costs, along with pricing pressure in India’s increasingly crowded EV market, as key barriers to profitability.

However, Ather’s early-mover advantage, growing brand loyalty, and factory expansion offer long-term tailwinds. With Factory 3.0 expected to raise annual production to 1.4 million units, the company is positioning itself for future EV demand growth.

About Ather Energy

Ather Energy is a prominent Indian electric vehicle (EV) manufacturer focused on designing and selling premium electric two-wheelers. Founded in 2013 by IIT Madras alumni Tarun Mehta and Swapnil Jain in Bengaluru, Ather Energy aims to revolutionize the electric vehicle industry in India with high-performance and smart electric scooters.  

Here's a breakdown of Ather Energy as of late April 2025:

Ather Energy History and Key Milestones:

• 2013: Ather Energy was founded by Tarun Mehta and Swapnil Jain, initially exploring battery solutions before focusing on building their own electric scooters.  

• 2014: Received early seed funding from Flipkart founders Sachin and Binny Bansal.

• 2016: Unveiled their first scooter, the S340, featuring a touchscreen dashboard and connected features.  

• 2018: Launched the Ather 450, considered India's fastest electric scooter at the time.

• 2019: Signed an MoU with the Government of Tamil Nadu to establish a manufacturing plant in Hosur.

• 2020: Launched the Ather 450X, an upgraded version of the 450.

• 2021: Achieved positive gross margins due to cost-cutting and strategic partnerships.

• 2024: Launched the Rizta series, targeting the family scooter market with features like large storage space and traction control. Achieved unicorn status with a valuation of over $1 billion in September 2024.

• Early 2025: Launched the 2025 Ather 450X with some elemental revisions. Completed a reverse flip, transferring its domicile from Singapore to India, ahead of its IPO.

• April 2025: Conducted its IPO (Initial Public Offering) between April 28th and April 30th, with shares scheduled for listing on May 6th.

Ather Energy Products and Services:

Ather Energy designs, develops, and assembles its scooters, battery packs, and charging infrastructure in-house. Their current product lineup includes:

• Ather Rizta: A family-oriented electric scooter known for its comfort and practicality.

• Ather 450S: A more affordable variant in the 450 series.

• Ather 450X: A high-performance smart electric scooter with advanced features.

• Ather 450 Apex: The premium and highest-performing model in their lineup.

Ather Energy also provides:

• Ather Grid: A widespread fast-charging network for EVs across India.

• Atherstack: A proprietary software platform offering over-the-air updates, ride statistics, and cloud integration.

• Ather Connect: A suite of smart features accessible through a mobile app, including navigation, call & music control, and theft & tow alerts.

• Service and Support: Comprehensive after-sales service and maintenance packages.

• Accessories and Merchandise: A range of accessories, including smart helmets, and branded merchandise.

• Assured Buyback: Offers up to 60% of the scooter's value back after 3 years.

• Eight70™ Battery Warranty: An 8-year warranty covering battery degradation.

• Ather Roadside Assistance: 24x7 emergency support.

Ather Energy Funding and Valuation:

Ather Energy has raised a total funding of $502 million across 19 rounds as of August 2024. Key investors include:

• Hero MotoCorp

• NIIF (National Investment and Infrastructure Fund)

• Tiger Global Management

• GIC (Singapore)

• Sachin Bansal

• Binny Bansal

As of September 4, 2024, Ather Energy's valuation stood at ₹6,000 Crore (approximately $714 million USD). However, leading up to its IPO in April 2025, the valuation was reported to be around $1.2 - $1.4 billion.

Ather Energy Future Plans:

• Product Expansion: Ather aims to create a "rich bouquet" of electric scooters, including more cost-effective and versatile models based on new platforms. They are also actively working on developing electric motorcycles, with potential launches in the entry and mid-level segments in the future.

• Manufacturing Expansion: Proceeds from the IPO will be used to set up a new electric two-wheeler manufacturing plant in Maharashtra to increase production capacity.

• Market Expansion: While initially focused on the southern market, Ather is actively expanding its presence in northern and western India, with the Rizta model proving successful in these regions. They aim to expand to over 500 cities.

• R&D Focus: Continued investment in research and development to introduce innovative features and improve their existing and future product lines.

• Strengthening Ather Grid: Further expansion of their fast-charging network across the country.

• Exploring New Verticals: Investigating opportunities in related areas like quick-commerce delivery, leveraging their EV fleet.

Ather Energy has established itself as a significant player in the Indian EV market with its focus on innovation, performance, and building a comprehensive EV ecosystem. Its recent IPO marks a new chapter in its growth journey.

Conclusion

Ather Energy’s muted debut on Dalal Street reflects broader investor caution amid volatile market conditions and stiff EV competition. Despite the modest premium at listing, the company’s strong fundamentals—backed by a robust R&D pipeline, extensive charging network, and upcoming manufacturing expansion—provide a solid foundation for long-term growth.

While profitability remains a challenge, Ather’s strategy to scale sustainably and lead India’s clean mobility transition positions it well for the future. As demand for electric mobility accelerates, especially in urban India, Ather’s vision and infrastructure investments could drive meaningful value in the years ahead.