Ather Energy Eyes ₹3,100 Crore IPO to Expand Electric Two-Wheeler Production

Ather Energy, one of India’s leading electric two-wheeler manufacturers, has filed for an initial public offering (IPO) to raise ₹3,100 crore. The Bengaluru-based company aims to use the funds to accelerate its growth by establishing a new production facility and boosting its research and development (R&D) efforts. The IPO will consist of a fresh issue of shares and an offer for sale (OFS) of up to 2.2 crore equity shares.

Key investors participating in the OFS include prominent names such as Caladium Investments, National Investment and Infrastructure Fund II, and co-founders Tarun Mehta and Swapnil Jain. The proceeds will largely go toward building a new electric two-wheeler factory in Chhatrapati Sambhajinagar, Maharashtra. Set to begin operations by May 2026, the plant will have an initial production capacity of 0.5 million electric two-wheelers (E2Ws) annually.

Apart from expanding production, Ather plans to allocate part of the IPO proceeds for R&D, marketing, and overall infrastructure development to strengthen its market presence. This move is essential for the company to compete in the growing Indian electric two-wheeler market, where it currently ranks fourth, trailing behind Ola Electric, TVS Motor, and Bajaj Auto.

Despite its ambitious plans, Ather Energy faces financial challenges, as its consolidated net loss widened to ₹1,059.7 crore in FY24, compared to ₹864.5 crore the previous year. However, the company’s revenue from operations increased to ₹1,753.8 crore during the same period.

This IPO marks a significant step for Ather Energy, further cementing its position as a key player in the electric mobility sector and advancing India’s transition toward sustainable transportation.

News by Rahul Yelligetti