Following its Rs 2,980 crore initial public offering (IPO), shares of Ather Energy had a muted debut on the bourses – NSE and BSE – on Tuesday (May 6, 2025).
On the NSE, the stock listed at Rs 328, marking a premium of 2.18 per cent over its issue price of Rs 321, while on the BSE, it listed at Rs 326.05, reflecting a 1.57 per cent premium.
The electric two-wheeler maker closed its initial public offering (IPO) on April 30 with an overall subscription of 1.5 times. The company received bids for 7.67 crore shares, exceeding the 5.11 crore shares on offer. The retail investor category was fully subscribed, with a 1.89 times subscription rate. The Qualified Institutional Buyers (QIBs) portion saw a subscription of 1.76 times, while the Non-Institutional Investor (NII) category received a subscription of 0.69 times.
The IPO comprised a fresh issue of Rs 2,626 crore and an offer-for-sale (OFS) of Rs 354 crore, with a price band of Rs 304–Rs 321 per share. At the upper end of the price range, Ather Energy’s market capitalisation is valued at approximately Rs 12,300 crore.
Also Read: Ather Energy IPO: Should you subscribe to Rs 2,981-crore issue? Here’s what analysts say
Ather Energy Stock Update
Shares of the E2W manufacturer company closed at Rs 302.30, down nearly 8 per cent from the listing price (Rs 328) on the NSE, while on another exchange, BSE, it was down 7.22 per cent from the listing price (Rs 326.05). From the higher price band, shares closed down 5.82 per cent and 5.76 per cent, respectively.
Deployment of funds
Ather Energy plans to utilise the proceeds from the IPO for several key initiatives, including the establishment of a new manufacturing facility, research and development, debt reduction, and marketing. The proposed allocation of funds is as follows:
- Establishment of an electric two-wheeler manufacturing plant in Maharashtra: Rs 927.2 crore
- Investment in Research and Development (R&D): Rs 750 crore
- Marketing and brand-building efforts: Rs 300 crore
- Repayment of borrowings: Rs 40 crore
Also Read: Ather Energy IPO Final Day: Issue fully subscribed; retail, employee lead
Company overview
Founded in 2013 by IIT-Madras alumni Tarun Mehta and Swapnil Jain, Ather Energy is a vertically integrated electric vehicle (EV) manufacturer, focusing on the design, development, and assembly of electric two-wheelers, battery packs, charging infrastructure, and proprietary software solutions.
In FY24, the company sold 1,09,577 electric two-wheelers, demonstrating robust growth in the EV market. As of December 2024, Ather had established 265 experience centres and 233 service centres across India, in addition to a growing international presence in Nepal and Sri Lanka.
Ather’s ecosystem includes Ather Grid, a fast-charging network for two-wheelers, and Atherstack, a proprietary software platform with 64 connected features, offering enhanced user experiences.
The company manufactures its vehicles at a facility in Hosur, Tamil Nadu, with an annual capacity of 4.2 lakh electric vehicles and 3.8 lakh battery packs, as of March 2024.
By February 2025, Ather had registered 303 trademarks, 201 designs, and 45 patents, with additional applications pending.
Ather’s business strategy is built on four pillars:
- Vertically integrated design and engineering
- A software-defined product ecosystem
- Premium market positioning
- Capital-efficient operations
As of March 2024, the company employed 2,454 people, including 1,458 on-roll employees and 996 off-roll staff.
