Ather Energy Secures ₹1,340 Cr Before IPO Launch
Ather Energy raises ₹1,340 crore from top anchor investors ahead of its IPO opening on April 28, 2025, signaling robust market interest.
Ather Energy Pulls in ₹1,340 Cr from Anchor Investors Before IPO
As India’s electric vehicle revolution picks up speed, Ather Energy has accelerated into the spotlight, securing ₹1,340 crore from anchor investors just days ahead of its highly anticipated initial public offering (IPO). The Bengaluru-based electric two-wheeler manufacturer confirmed the pre-IPO investment on Friday, setting the stage for one of the most closely watched listings in India’s clean mobility sector.
Strong Institutional Backing Shows Investor Confidence
The pre-IPO funding round saw participation from a who’s who of institutional investors, both domestic and global. Leading Indian mutual funds—SBI Mutual Fund, ICICI Prudential MF, Aditya Birla Sun Life MF, and Invesco MF—placed significant bets on Ather’s growth story. Adding global weight to the anchor list were investment heavyweights like Morgan Stanley Investment Management, Franklin Templeton Global, PIMCO, and the Abu Dhabi Investment Authority (ADIA).
Singapore-based Eastspring Investments, Helios MF from the US, and Helios Capital—led by veteran investor Samir Arora—also participated. Other notable names included Tata Investment Corporation, Union Mutual Fund, Subhkam Ventures, British firm LMR Partners, and Ovata Capital of Hong Kong.
Such broad-based participation from marquee investors suggests a high level of confidence in Ather’s business model, growth potential, and the broader trajectory of India’s electric mobility sector.
IPO Details: Price Band and Market Valuation
According to the regulatory filing on the Bombay Stock Exchange (BSE), Ather Energy has allotted 4.17 crore shares to 36 institutional funds at ₹321 per share—the top end of the price band. This allotment alone raised ₹1,340 crore, reflecting significant demand even before the IPO opens to retail and non-institutional investors.
The IPO, scheduled to open on Monday, April 28 and close on April 30, will offer shares within a price band of ₹304 to ₹321. The total issue size stands at ₹2,981 crore, comprising a fresh equity issue worth ₹2,626 crore and an offer-for-sale (OFS) of 1.1 crore shares from existing shareholders.
Should the shares be fully subscribed at the upper price band, Ather’s post-IPO valuation could reach approximately ₹11,956 crore—putting the EV startup in the unicorn league.
What Will the Funds Be Used For?
The capital raised is not just symbolic—it’s strategic. Ather plans to channel a significant portion of the proceeds into setting up a new manufacturing facility in Maharashtra. This plant will enable the company to scale up its production capacity to meet rising demand in India’s fast-growing electric two-wheeler market.
Additionally, part of the funds will be used to reduce existing debt, strengthening the company’s balance sheet and preparing it for the next phase of growth. This dual focus—capacity expansion and financial consolidation—signals a maturing startup ready to operate at a national and potentially global scale.
Ather’s Road So Far
Founded in 2013 by IIT Madras alumni Tarun Mehta and Swapnil Jain, Ather Energy has built a solid reputation for innovation in the EV space. With its Ather 450 series, the company has positioned itself as a premium, tech-forward alternative to traditional scooters. The startup has also invested in building its proprietary charging network, Ather Grid, giving it an edge over competitors relying on third-party infrastructure.
The company’s direct-to-consumer approach, data-driven vehicle intelligence, and emphasis on performance have helped it carve a niche in a market that’s increasingly warming up to electric mobility.
The Bigger Picture: EV Market on the Rise
India’s EV market is projected to reach a value of $150 billion by 2030, according to a recent NITI Aayog report, driven by government incentives, urban pollution concerns, and rising fuel costs. Two-wheelers represent the largest segment of this opportunity, making Ather’s growth potential especially compelling for investors.
With Tesla’s India entry still pending and domestic players like Ola Electric and TVS expanding aggressively, Ather’s IPO arrives at a pivotal moment in the EV landscape.
Final Thoughts: Ather’s IPO Could Be a Watershed Moment
Ather Energy’s successful anchor round signals a strong vote of confidence from the investment community, not just in the company but in India’s broader electric vehicle narrative. For retail investors, the IPO represents a chance to participate in a high-growth sector that’s aligned with global sustainability goals and domestic policy priorities.
As the IPO opens for subscription, Ather isn’t just offering shares—it’s offering a stake in India’s clean energy future.
Disclaimer:
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a licensed financial advisor before making any investment decisions.
source : Business Today