Electric Two-Wheeler Maker Ather Energy Raises Funds Ahead of IPO
Ather Energy, a leading electric two-wheeler manufacturer, has successfully raised Rs 1,340 crore from a group of anchor investors. This significant investment comes just before the company’s highly anticipated initial public offering (IPO), which is set to open for subscription. The company allotted 4.17 crore shares at Rs 321 apiece, the upper end of its price band, to 36 institutional funds.
Anchor Investors
The list of anchor investors includes prominent global and domestic names such as Custody Bank of Japan, Franklin Templeton, Abu Dhabi Investment Authority, Eastspring Investments, Morgan Stanley Investment Management, and Societe Generale. Domestic mutual funds like PSBI Mutual Fund, Aditya Birla Sun Life MF, ICICI Prudential MF, Invesco MF, ITI MF, and Union MF also participated in the anchor round. This diverse group of investors demonstrates the confidence in Ather Energy’s vision and growth potential.
IPO Details
The Rs 2,981-crore IPO, which opens on April 28 and closes on April 30, comprises a fresh issue of equity shares worth Rs 2,626 crore and an offer for sale (OFS) of 1.1 crore shares by promoters and other shareholders. The price band has been set at Rs 304-321 per share, with the company’s post-issue valuation estimated at around Rs 11,956 crore at the upper end. The company’s equity shares are slated to list on the stock exchanges on May 6.
IPO Launch and Listing
This marks the first mainboard IPO of the 2025-26 financial year and the second listing by an electric two-wheeler company after Ola Electric Mobility’s Rs 6,145-crore offering last year. The IPO is expected to generate significant interest among investors, given the growing demand for electric vehicles in India.
Utilization of IPO Proceeds
The funds raised through the IPO will be utilized towards a range of strategic priorities, including setting up a new electric two-wheeler plant in Maharashtra (Rs 927.2 crore), repaying debt (Rs 40 crore), expanding R&D (Rs 750 crore), scaling marketing efforts (Rs 300 crore), and supporting general corporate operations. The utilisation of these funds will occur over the fiscal years 2026 to 2028. Ather is also expected to continue investing in its in-house battery technology and Atherstack, its proprietary software platform that powers features such as navigation, ride analytics, and safety.
Strategic Priorities
The company’s focus on research and development, marketing, and expanding its manufacturing capabilities is expected to drive growth and increase its market share in the electric two-wheeler segment. Ather’s commitment to innovation and customer experience is likely to attract more investors and customers to the brand.
Backing from Notable Investors
Ather Energy is backed by marquee investors such as Hero MotoCorp and Tiger Global, which has enabled the company to steadily expand its presence in India’s premium electric vehicle segment. The Bengaluru-based company offers two flagship product lines—the Ather 450 series and the recently launched Ather Rizta—complemented by in-house developed software, Atherstack, which provides navigation, ride analytics, and safety features.
Product Offerings
Ather’s product portfolio is designed to cater to the growing demand for electric vehicles in India, with a focus on performance, design, and technology. The company’s expansion plans, including the setting up of a new manufacturing plant, are expected to increase its production capacity and meet the growing demand for its products.
Conclusion
Ather Energy’s successful fundraising ahead of its IPO is a significant milestone for the company, demonstrating the confidence of investors in its growth potential. With a strong product portfolio, commitment to innovation, and backing from notable investors, Ather Energy is well-positioned to capitalize on the growing demand for electric vehicles in India. The company’s IPO is expected to generate significant interest among investors, and its listing on the stock exchanges is likely to be a major event in the Indian automotive industry.
