Ather Energy Files RHP to Raise ₹2,626 Crore in Fresh Issue; IPO Opens April 28

Ather Energy Files RHP to Raise ₹2,626 Crore in Fresh Issue; IPO Opens April 28

In a key development for India’s electric vehicle (EV) sector, Bengaluru-based Ather Energy has officially filed its Red Herring Prospectus (RHP) with the Securities and Exchange Board of India (SEBI) to raise ₹2,626 crore through a fresh issue of shares. The IPO will be open for public subscription from April 28 to April 30, with the anchor book opening on April 25.

IPO Structure and Stake Sale

The IPO will include a fresh issue of ₹2,626 crore, slightly lower than the ₹3,100 crore target stated in the company’s earlier Draft Red Herring Prospectus (DRHP) filed in September last year. Alongside the fresh issue, existing shareholders including co-founders Tarun Mehta and Swapnil Jain, NIIF Fund II, Tiger Global’s Internet Fund III, and Caladium Investment (an affiliate of Singapore’s sovereign wealth fund GIC), will offload a portion of their stakes in the company.

The co-founders are expected to offload up to 980,000 equity shares each as part of the offering.

Second EV Company to List in India

With this IPO, Ather Energy will become only the second electric vehicle manufacturer to be listed on Indian stock exchanges, following the 2024 listing of Ola Electric, led by Bhavish Aggarwal. The move signifies a growing interest in India’s green mobility ecosystem and a shift in investor sentiment towards sustainable and future-ready ventures.

Hero MotoCorp’s Strategic Backing

Ather Energy enjoys strong backing from Hero MotoCorp, which holds a 39.7% stake in the EV company. Hero’s continued support underscores growing legacy interest in the new-age electric mobility space and provides Ather with strategic leverage in product development, manufacturing, and distribution.

Utilization of IPO Proceeds

The capital raised from the fresh issue will be strategically deployed across several critical areas:

• Setting up a new manufacturing facility for electric two-wheelers (E2Ws) in Maharashtra

• Repayment of borrowings to improve balance sheet strength

• Investment in research and development (R&D) to drive innovation and new product development

• General corporate purposes to support long-term growth

Financial Snapshot: FY24 Performance

Despite its growth plans, Ather Energy has reported a dip in revenue and widening losses for FY 2023–2024. The company’s revenue from operations declined to ₹1,753.8 crore, slightly lower than the ₹1,780.9 crore posted in FY23. Meanwhile, net losses expanded to ₹1,059.7 crore compared to ₹864.5 crore in the previous fiscal year.

This performance reflects the high-capex nature of the EV business and ongoing investments in R&D, expansion, and product development, all of which are expected to yield results in the longer run.

Timing Amid Global and Domestic Headwinds

The listing comes at a time when global markets are experiencing volatility, especially after reciprocal trade tariffs introduced by former U.S. President Donald Trump stirred concerns about global supply chains and trade flows. Nevertheless, Indian startups continue to pursue IPOs as the domestic market remains comparatively resilient, driven by strong investor appetite and a growing consumer base.

India’s EV Story: Building Momentum

The IPO of Ather Energy adds another chapter to India’s electric vehicle transition. The company has been a pioneer in the two-wheeler EV segment, known for its in-house product development, robust charging infrastructure (Ather Grid), and innovation-driven approach. Its decision to go public reaffirms confidence in India’s ability to produce world-class clean mobility solutions and scale them profitably.

As interest in electric mobility surges across India and globally, Ather’s IPO could serve as a litmus test for investor confidence in the long-term viability of EV businesses. It also strengthens India’s positioning as a key player in the sustainable transport ecosystem.