In a significant development for India’s electric vehicle (EV) sector, Bengaluru-based Ather Energy has received the green light from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). The approval marks a crucial milestone for the company, which is set to become only the second EV manufacturer in India to go public after Ola Electric.
The proposed IPO comprises a fresh issue of equity shares worth Rs 3,100 crore and an offer for sale (OFS) of up to 2.2 crore equity shares by existing shareholders. This move comes at a time when India’s EV market is experiencing rapid growth and transformation.
Founders Tarun Mehta and Swapnil Jain are each offering up to 10 lakh equity shares as part of the OFS, while several institutional investors, including Singapore’s GIC and the National Investment and Infrastructure Fund II (NIIF-II), are also participating in the share sale. Notably, Hero MotoCorp, which holds a 37.2% stake in the company, will retain its entire shareholding.
“This IPO represents a watershed moment for India’s EV manufacturing sector,” says Dr. Srinivas Kumar, Director of the Tamil Nadu EV Policy Institute. “Ather Energy’s public listing will not only strengthen the company’s position but also create ripple effects across the entire EV manufacturing ecosystem in South India.”
The company’s growth trajectory has been remarkable, with Ather Energy currently ranking as India’s fourth-largest electric two-wheeler manufacturer. In 2024, the company reported sales of approximately 125,569 vehicles, according to data from the government’s Vahan portal. The company is targeting a valuation of $2-2.25 billion for the IPO.
For Tamil Nadu’s startup and manufacturing ecosystem, Ather Energy’s IPO holds particular significance. The state, which has positioned itself as an EV manufacturing hub, stands to benefit from the company’s expansion plans. Ather’s success could attract more EV manufacturers and ancillary industries to the region, potentially creating thousands of jobs and strengthening the local supply chain.
“The Tamil Nadu government’s proactive EV policies and manufacturing infrastructure have created an ideal environment for companies like Ather Energy to thrive,” explains Ramesh Venkataraman, President of the Tamil Nadu Electric Vehicle Manufacturers Association. “This IPO will likely accelerate investments in the state’s EV ecosystem.”
Despite reporting widened losses of Rs 1,059 crore in fiscal 2024, Ather Energy maintains ambitious growth plans. The fresh capital will fund several strategic initiatives, including establishing a new electric two-wheeler factory in Maharashtra, investing in R&D, and expanding marketing efforts. The company’s in-house manufacturing capabilities for battery packs and E2Ws position it uniquely in the market.
The success of Ather Energy’s IPO could serve as a blueprint for other EV startups in Tamil Nadu and across India. With the appointment of prominent book-running lead managers including Axis Capital, HSBC Securities, JM Financial, and Nomura Financial Advisory, the company appears well-positioned for its public market debut.
