MUMBAI: 1st May 2025: Ather Energy, a Bengaluru-based electric two-wheeler manufacturer, has had a sluggish start to its IPO, with a subscription rate 1.5 times that of the Rs 2981 crore it planned to raise from the markets.
Retail investors subscribed 1.78 times, while non-institutional investors subscribed at a rate of 66%, and qualified institutional buyers (QIBs) subscribed 1.70 times.
At a share price of Rs 321, investors have been cautious due to the subdued response to electric vehicles and a lack of interest in the secondary market, which has contributed to the IPO’s slow start.
During the subscription phase, Ather raised Rs. 1,340 crore from prominent investors including SBI Small Cap Fund, ADIA, Helios (Sameer Arora), Franklin Templeton, and Aditya Birla Sun Life.
This pricing yields a post-money valuation of Rs 11,956 crore (approximately $1.4 billion) and a pre-money valuation of Rs 9,330 crore for Ather.
According to company representatives, this valuation accounts for approximately 55% of Ola Electric’s market capitalisation, even though Ola has three times the sales volume and a 30% market share.
“The elevated valuation reflects investor confidence in Ather’s strong focus, unit economics, and product-driven strategy,” said a company official. Ather’s vertically integrated approach, with 55% of its workforce dedicated to R&D and nearly 300 patents filed, sets it apart in the competitive EV market. Its in-house product development, control over hardware and software (Ather Stack), and proprietary charging infrastructure (Ather Grid) distinguish it as a forward-thinking and unique player,” senior company officials remarked
The recent introduction of the Ather Rizta has allowed the company to expand its reach from performance to convenience, gaining traction in new regions such as Gujarat, Odisha, and Maharashtra, as well as increasing its market share in Northern and Western India. By the end of April, Ather had a 14.5% market share, up from 12% in March, cementing its position as India’s fourth-largest electric two-wheeler brand, trailing only Ola Electric, TVS, and Bajaj.
