Ather Energy IPO: Tiger Global and Other Investors to Reap Major Returns

Ather Energy IPO: Tiger Global and Other Investors to Reap Major Returns

Bengaluru-based electric vehicle (EV) manufacturer Ather Energy is set to hit the public markets with its IPO priced between ₹304 and ₹321 per share. The offering presents significant windfalls for early investors, with Tiger Global poised to register a remarkable 734% return on its investment.

A Milestone IPO for India’s EV Landscape

Ather becomes the second Indian EV company to go public, following Ola Electric's debut last year. The IPO will open for subscription from April 28 to April 30, with the anchor book opening on April 25.

Backed by Hero MotoCorp, which holds a substantial 40% stake (and will not participate in the share sale), Ather is planning to raise ₹2,626 crore through the fresh issue of shares. The capital will primarily fund the setup of a new electric two-wheeler manufacturing unit in Maharashtra.

Early Backers Cashing In

Tiger Global first backed Ather in its 2015 Series A round, investing $12 million through Internet Fund III. In the current offer for sale (OFS), Tiger Global will offload 4 lakh shares, achieving about 8x returns based on the upper price band. With an acquisition cost of ₹38.58 per share, the fund is expected to earn approximately ₹12.84 crore.

Similarly, other investors are poised to benefit:

• National Investment and Infrastructure Fund (NIIF), which joined in the 2022 Series E round, will see a 74.7% return, netting ₹84.57 crore by offloading 26.34 lakh shares. NIIF’s cost per share was ₹183.71.

• Caladium Investment, linked to Singapore’s GIC, will exit with a 57.17% gain, expected to earn ₹192.71 crore from selling over 60 lakh shares acquired at ₹204.24 per share.

Promoters, Institutions, and Strategic Exits

Founders Tarun Mehta and Swapnil Jain will each tender 9.8 lakh shares, resulting in personal payouts of approximately ₹31.46 crore each—representing more than 15x returns on their holdings.

Other participants in the OFS include:

• IITM Incubation Cell

• IITMS Rural Technology and Business Incubator

• Amit Bhatia (individual shareholder)

The total OFS will comprise 11.05 million equity shares, offering a lucrative exit for early stakeholders while allowing new investors to participate in one of India’s leading EV innovators.

Building the Future of Electric Mobility

Founded in 2013, Ather Energy has emerged as a prominent player in India’s electric mobility sector. The IPO proceeds will accelerate its manufacturing expansion and support R&D initiatives in an increasingly competitive EV landscape.

With investor enthusiasm high and strategic goals clearly defined, Ather's public listing marks a pivotal step not only for the company but also for the broader EV ecosystem in India.