Ather Energy IPO: Price band fixed at ₹304-321 per share, issue size cut to ₹2,981 cr

The highly anticipated initial public offering (IPO) of electric vehicles maker Ather Energy will open for subscription on April 28, the first and the largest mainboard public issue of FY26. This will be the second pure-play Indian EV manufacturer to go public, following Ola Electric’s listing last year.

The anchor book of the Ather Energy IPO will open on April 25, and the three-day issue will close on April 30, while the stocks are scheduled to list on domestic stock exchanges on May 6.

The Bengaluru-headquartered pure-play EV company has set a price band of ₹304-321 per share for its IPO, which is a combination of fresh equities and offer for sale (OFS) by selling shareholders.

The IPO of the firm co-promoted by Tarun Mehta and Swapnil Jain comprises fresh equities worth ₹2,626 crore and OFS of up to 1.1 crore shares, which at the upper end of the price band amounts to around ₹355 crore. As a result, the total issue size is calculated to be around ₹2,981 crore, which is sharply lower than earlier estimates of ₹4,000 crore.

In the backdrop of volatility in the secondary market, Ather Energy has cut its fresh issue size from ₹3,100 crore proposed earlier, while it also halved its OFS size from 2.2 crore mentioned in the preliminary documents filed with the Securities and Exchange Board of India (Sebi) in September 2024.

The EV startup is seen raising money at market valuation of ₹12,000 crore, down from ₹14,000 crore projected earlier, amid fragile market conditions and weak investor appetite.

The Ather Energy IPO lot size is 46 equity shares and in multiples thereafter, which means minimal application amount for one lot for retail investor would be ₹14,766 (at upper end of price band).

The company has reserved up to 75% of the public issue for qualified institutional buyers (QIB), 15% for non-institutional Institutional Investors (NII), and the remaining 10% for retail investors. The employee quota has been reserved up to 100,000 equity shares, which will be offered at a discount of ₹30 per equity share.

The electric scooter startup, backed by investors including Hero MotoCorp , Sachin Bansal, Binny Bansal, Tiger Global, and the National Investment and Infrastructure Fund (NIIF), proposes to utilise the net proceeds of the fresh issue towards funding of capital expenditure requirements for establishment of an electric two-wheeler factory in Maharashtra. A part of the capital will be invested in research and development; repayment or pre-payment, in full or part, of certain borrowings availed by the company; expenditure towards marketing initiatives; and general corporate purposes.

Notably, the Ather IPO is the first mainboard issue after nearly two months, as Quality Power was the last company to list its shares on the domestic bourse—the BSE and the NSE—on February 24, 2025. Since then, not a single mainboard IPO has been launched, marking a complete standstill in primary market activity, a situation which was last witnessed in May 2023. Most of the companies delayed or paused their listing plans due to sustained market volatility, weak investor sentiment, and unfavourable valuations. 

Formed in 2013, Ather Energy designs and develops electric two-wheelers, battery packs, charging infrastructure, associated software and accessories as well as manufactures battery packs and assembles E2Ws in-house. In fiscal year 2024, it sold 109,577 E2Ws and was the third largest player by volume of E2W sales, as per CRISIL. It manufactures electric scooters including the Ather 450 Apex, Ather 450S, Ather 450X, Ather 450X Pro, and Ather Rizta.

Axis Capital, HSBC Securities and Capital Markets (India) Pvt Ltd, JM Financial and Nomura Financial Advisory Securities (India) Pvt Ltd are the book-running lead managers to the issue.

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