Indian electric two-wheeler maker Ather Energy’s initial public offering (IPO) opened for public subscription on Monday (April 28). The company also announced raising Rs 1,340 crore ($158 million) from anchor investors ahead of the share sale.
The anchor book saw participation from global and domestic investors, including Custody Bank of Japan, Franklin Templeton, Abu Dhabi Investment Authority (ADIA), Eastspring Investments, Morgan Stanley Investment Management, and Societe Generale.
Among domestic institutions, PSBI Mutual Fund, Aditya Birla Sun Life Mutual Fund, ICICI Prudential Mutual Fund, Invesco Mutual Fund, Aditya Birla Sun Life Insurance, ITI Mutual Fund, and Union Mutual Fund were among those allocated shares.
The company is issuing new shares worth up to Rs 7,500 crore ($90 million) and offering 49.6 million shares for sale by existing investors including founders Tarun Mehta and Swapnil Jain, Hero MotoCorp, and Singapore’s GIC. The offer for sale (OFS) component is expected to dominate the issue size, with a number of early investors looking to partially exit.
Ather Energy’s IPO comes at a time when rising global volatility and cautious investor sentiment are prompting many companies to recalibrate their listing plans.
India’s overall public market momentum is showing signs of softening. The country hosted the most IPOs globally in the first quarter of 2025, but a 23% year-on-year drop in volume and modest growth in proceeds suggest the market may have peaked, according to EY’s latest IPO trends report.
Benchmark indices have also remained under pressure, weighed down by weak earnings, foreign capital outflows, and global uncertainty linked to tariffs and inflation.
Ather’s move will be closely watched, particularly after the lacklustre post-listing performance of Ola Electric, one of India’s highest-profile EV IPOs earlier this year. Despite a strong debut, Ola Electric’s shares have lost significant value since, hurt by market share erosion and regulatory challenges. Analysts, according to media reports, say this backdrop could make investors more discerning about upcoming EV listings.
Since its listing, Ola Electric’s stock has lost over 45% in value and was trading at Rs 49 in afternoon trading on Monday.
Founded in 2013, Bengaluru-based Ather is one of India’s earliest electric two-wheeler companies, known for its smart scooters like the Ather 450X. The company counts Hero MotoCorp as its largest shareholder and has steadily expanded its presence amid growing adoption of EVs in India.
Ather‘s losses widened for at least the second consecutive year in fiscal 2024 to Rs 10,600 crore from Rs 8,640 crore a year earlier, according to its draft red herring prospectus (DRHP), Reuters reported in September.
The timing of Ather’s IPO could prove challenging. Global capital markets have been shaken by tariff escalations between the US and China, while in India, IPO proceeds in the March quarter grew only 12% year-on-year, trailing behind global peers such as Japan, Hong Kong, and South Korea. India’s share of global IPO volumes also fell to 21.6% from nearly 29% a year ago, the EY report noted.
Ather’s filing also comes at a time when India’s EV sector continues to grow steadily, supported by rising consumer demand, favourable regulations, and expanding charging networks. However, challenges remain, particularly the sector’s heavy reliance on Chinese supply chains for critical battery components—a concern increasingly highlighted by policymakers and industry leaders.
In recent months, India’s public market sentiment has favoured profitable or near-profitable companies. About 90% of India’s Q1 2025 IPOs were from profitable firms, according to EY. Ather, however, remains in the red, and its growth-focused narrative will be put to the test as it seeks to win investor confidence.
