Ather Energy IPO: India’s Electric Mobility Future

26 April 2025

Ather Energy’s IPO isn’t just about raising capital – it could be a milestone moment for India’s EV ecosystem as its Founders and early investors are set to see windfall gains from this listing. 

• While the company is yet to turn profitable, the IPO has turned into a golden exit for early believers — from marquee VCs like Tiger Global to IITM Incubation Cell. Founders Tarun Mehta and Swapnil Jain are cashing out a total of 19.6 lakh shares between them – 9.8 lakh each. With a weighted average acquisition cost of just Rs 21.09 per share, the duo is looking at over 15x returns.

• Founded in 2013, the Bengaluru-based Ather Energy designs and manufactures electric scooters along with supporting infrastructure such as charging networks and smart software solutions, positioning itself as more than just a vehicle maker but a comprehensive mobility solutions provider. 

• The upcoming IPO aims to fund Ather's expansion plans, including setting up a new manufacturing facility, research and development, and debt repayment. Notably, major shareholder Hero MotoCorp, holding around a 40% stake, will not be selling any shares in this offering.

• Ather's decision to proceed with the IPO at a reduced valuation of ~ $1.4 billion, down from an earlier target of $2.5 billion, reflects a strategic move to attract investors amid market volatility. The company has also reduced the fresh share issuance by 15%, and key investors like GIC and Tiger Global have halved their share offerings.