Ather Energy, a prominent player in India’s electric two-wheeler (E2W) market, is taking a significant step towards strengthening its position by announcing a ₹2,626 crore initial public offering (IPO).
The move, which includes a fresh issue of ₹2,271 crore and an offer for sale (OFS) worth ₹355 crore, is geared towards enhancing production capabilities, reducing existing debt, and advancing its research and development (R&D) efforts. The company, despite recording continued losses, has shown considerable growth, with a notable uptick in volume, particularly driven by its new ‘Rizta’ model. This ambitious IPO also signals Ather’s determination to consolidate its market share in the highly competitive electric mobility segment.Founded in 2013, Ather Energy has steadily positioned itself as a leader in the electric vehicle (EV) space, with a growing base of 233 service centres across 202 cities.
While the company has been grappling with financial losses, its strategic approach towards expanding product offerings and strengthening infrastructure has kept it in the spotlight. The IPO will help fund Ather’s plans for a second manufacturing facility in Chhatrapati Sambhajinagar, Maharashtra, which is expected to increase the company’s production capacity to one million units annually. This new facility will also serve as a hub for developing new platforms for both scooters and motorcycles, further boosting its competitive edge.Despite losses, Ather has shown impressive growth in its volumes, registering a 18% increase in sales over the January-April 2025 period, according to data from the Vahan portal.
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This performance comes in contrast to Ola Electric, its key competitor, which saw a 54% drop in volumes during the same period. As of December 2024, Ather commanded 10.7% of the market share in the electric two-wheeler segment, with Ola holding a larger 34.1%. In its nine-month results for FY25, Ather’s revenue increased by 28% year-on-year, amounting to ₹1,578.9 crore, while its net loss narrowed to ₹577.9 crore, compared to ₹422.9 crore in the previous year.Ather’s IPO comes at a time when the Indian electric vehicle market is witnessing significant competition, with several established players and new entrants vying for market share. Ola Electric, despite a recent decline in sales, has been aggressively expanding, making the competitive landscape even more challenging. The market’s dynamics, combined with Ather’s ongoing losses, make this IPO a high-risk proposition for potential investors. However, the company’s strong brand presence, innovative product lines, and planned expansions are likely to appeal to investors with a high risk tolerance.
The company’s valuation post-IPO will be based on a price-to-sales (P/S) multiple of up to 5.7, which is slightly higher than the 4.2 multiple of Ola Electric. While this may raise concerns regarding the company’s profitability, Ather’s continued focus on scaling production, reducing debt, and developing innovative solutions is likely to generate investor interest. With electric mobility gaining momentum, Ather Energy’s IPO could potentially be a turning point, helping it secure a solid foundation for the future of sustainable, eco-friendly transportation in India.
The coming months will be crucial for Ather Energy as it continues to navigate the challenges of the electric vehicle market, including volatile demand, competitive pressures, and the need to balance growth with profitability. For now, investors and stakeholders will be watching closely as the company aims to capitalise on its strengths and transform the future of India’s electric mobility landscape.
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Ather Energy Plans IPO to Boost Growth and Reduce Debt
