Ather Energy unveils growth blueprint ahead of IPO next week

Pure electric scooter manufacturer Ather Energy has outlined key growth strategies ahead of its initial public offering (IPO) on April 28. This will be the first IPO of FY26.

During a pre-IPO press conference on Wednesday, CEO of Ather Energy, Tarun Mehta, stated that the company will focus on expanding its product portfolio, improving unit economics, and deepening the distribution network.

Mehta said, "Our first priority is to expand the product portfolio with the recent launch of the Rizta, followed by platform products in the coming years, and eventually bikes. We are also improving our unit economics by introducing LFP battery packs across our portfolio, which will further reduce costs and strengthen our supply chain for lithium cells and batteries. Additionally, with the E1 platform, our costs will improve even further." The company's E1 platform will manufacture models at its facility in Aurangabad, Maharashtra.

In terms of expansion, Ather Energy is focusing on the north-western and eastern markets, particularly in the Western and northern regions, according to Mehta.

Another key strategy of the company will be to improve operational efficiencies and manufacturing capabilities. Mehta stated, "We should also focus on increasing backward integration to drive cost efficiencies, improve scale for the business, secure sales supply chains through partnerships, establish long-term supply agreements with partners in India, ensure that strategic partnerships and potential acquisitions across the product portfolio are locally sourced, and continue to invest in building the Ather brand."

The electric scooter manufacturer has significantly reduced the size of its IPO. The company now aims to raise Rs 2,626 crore through a fresh sale, compared to the previously announced Rs 3,100 crore. The company attributes the decrease in the IPO size to a reduction in the offer for sale. 

"Since the filing of the DRHP, the business has performed exceptionally well. The primary reason for the smaller issue size is a substantial decrease in the offer for sale, now only accounting for 12% of the total issue. This is because existing shareholders have recognized the strong growth potential and decided to sell less than originally planned," explained the company.