Ather Energy IPO opens today: Should you subscribe to it or give a skip?

The Rs 2,980 crore-initial public offering (IPO) of Ather Energy opens for bidding today, that is, Monday, April 28 and can be subscribed till Wednesday, April 30. The Hero MotoCorp-backed electric two-wheeler maker is offering its shares in the range of Rs 304-321 apiece, which can be applied for a minimum of 46 equity shares and its multiples thereafter.

Incorporated in 2013, Bengaluru-based Ather Energy is a pure-play electric two-wheeler (E2W) company engaged in the design, development, and in-house assembly of electric scooters, battery packs, charging infrastructure, and supporting software systems. It operates as a vertically integrated EV manufacturer with a focus on product and technology development.

The IPO of Ather energy includes a fresh share sale of Rs 2,626 crore and offer-for-sale (OFS) of up to 1,10,51,746 equity by its promoters and shareholders. The proceeds from the issue shall be utilized towards capital expenditure of an E2W factory; repayment of certain borrowings; investment in research * development; expenditure towards marketing; and general corporate purposes.

Ather Energy sold 1,07,983 E2Ws and 1,09,577 E2Ws in the nine months ended December 31, 2024 and financial year 2023-24, respectively. It had 265 experience centres and 233 service centres in India, five experience centres and four service centres in Nepal, and ten experience centres and one service centre in Sri Lanka as of December 31, 2024.

Ather's manufacturing is carried out at the Hosur Factory in Tamil Nadu, which had an annual installed capacity of 420,000 electric vehicles and 379,800 battery packs as of March 2024. It had 303 registered trademarks, 201 registered designs and 45 registered patents as of February 28, 2025, in addition to pending applications for 102 trademarks, 12 designs and 303 patents.

For the nine months ended on March 31, 2025, Ather Energy reported a net loss of Rs 577.9 crore, with a revenue of Rs 1,617.4 crore. The company's net loss stood at Rs 1,059.7 crore with a revenue of Rs 1,789.1 crore in the financial year 2023-24. Its total borrowing stood at Rs 1,121.6 crore as of December 31, 2024. The company shall command a marketcap of Rs 11,956 crore.

Ather Energy has reserved 1,00,000 equity shares for its eligible employees who will get a discount of Rs 30 per share during the IPO. 75 per cent of the net issue has been reserved for qualified institutional bidders, while 15 per cent of the net offer shall go to the non-institutional bidders. Only 10 per cent of shares from the net issue shall be allocated to the retail investors.

Axis Capital, HSBC Securities & Capital Markets, JM Financial, Nomura Financial Advisory and Securities (India) are the book running lead managers of the Ather Energy IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE with May 6 as the date of listing. Here is what a host of analysts say about the IPO of Ather Energy:

SBI Securities
Rating: Avoid
Ather Energy is yet to achieve profitability at the Ebitda and PAT level. Competition is intensifying in the electric two-wheeler industry with established OEMs such as TVS Motors, Bajaj Auto and Hero MotoCorp expanding their respective E-2W product portfolio and the distribution network, said SBI Securities.

"Honda Motorcycles and Scooters India (HMSI) has launched its electric scooter offering under the popular ‘Activa’ brand which should further intensify competition. Ather trades at 5.7 times P/S at upper price band of Rs 321. Investors are recommended to 'avoid' the issue. We will review the company’s performance post listing," it added.

Chola Securities
Rating: Avoid
Ather’s E2W market share has declined to 10.7 per cent in 9MFY25 from 11.5 per cent in FY24, while other peers like Ola electric TVS Motors and Bajaj Auto grew in the aforementioned period. Ather’s revenue from operations declined to Rs 1,753.8 crore in FY24, down from Rs. 1,780.9 crore in FY23, reflecting lower blended realization, said Chola Securities.

"Capacity utilisation at Ather's Hosur plant remains low at 39 per cent for E2Ws and 41 per cent for battery packs as of December 2024. Despite this underutilisation, the company plans to invest Rs 927 crore to set up Factory 3.0 in Maharashtra with 500,000 units capacity, raising concerns over capital efficiency. We have an 'avoid' rating for Ather Energy," it said.

StoxBox (BP Equities)
Rating: Avoid
Ather Energy has increased its debt from Rs 30.9 crore in FY24 to Rs 160.2 crore in 9MFY25, raising concerns about its financial sustainability, said StoxBox by BP Equities. "Given the rising debt levels and persistent loss-making status, we recommend an 'avoid' rating. We will reassess our recommendation if there is a sustained improvement in financial metrics in future," it added.

Ventura Securities
Rating: Subscribe for listing gains
Ather employs a hybrid distribution model. Ather Grid, with more than 3,000 fast-charging points across over 100 cities, supports EV adoption, offering free charging for Ather owners and paid access for others. Ather invests heavily in R&D to innovate in battery technology, software, and vehicle design, with 48 per cent of its 3,260 employees dedicated to R&D, said Ventura Securities.

"We recommend subscribe for listing gains. Its premium focus, Ather Grid and R&D driven innovation differentiates it from competitors. The company is going through major capex with its Ather Factory 3.0 (will have 10 Lakhs unit capacity by mid FY26). This comes despite challenges such as subsidy cuts and low-capacity utilization," said Ventura.

SMC Global Securities
Rating: Subscribe with caution
Ather Energy is a pure play EV company selling E2W, batteries and other related products. The company is expanding its capacity with a new unit in Maharashtra. The company enjoys strong parentage and is the main attraction, said SMC Global Securities. "It’s a pure long-term story, hence well informed/cash surplus investors may park moderate funds," it said.

Arihant Capital Markets
Rating: Subscribe for listing gains
Ather Energy is strongly positioned in India’s fast-growing electric two-wheeler market, backed by its early-mover advantage, premium product positioning, and robust in-house R&D and technology ecosystem. Its recent launches, like the Ather Rizta, have helped expand its customer base, said Arihant Capital Markets.

"While the reduction of government subsidies has been a challenge, the company has managed to improve its profitability metrics and reduce subsidy dependence. The issue is valued at a EV/sales ratio of 8 times, based on a 9MFY25 Sales of Rs 1,578.9 crore. We are recommending a 'subscribe for listing gain' rating for this issue," it said.

Bajaj Broking Research
Rating: Subscribe for long-term
Ather is a pure-play EV company specializing in the sale of electric two-wheelers (E2Ws), batteries, and other related products. It is in the process of expanding its manufacturing capacity by setting up a new unit in Maharashtra. Despite its growth initiatives, the company has been consistently posting losses and carries significant accumulated losses, said Bajaj Broking Research.

"Its financial performance has resulted in a negative PE ratio, and its borrowings stood at over Rs 1121 crore as of December 31, 2024, which is a point of concern. Considering its current financials, this appears to be a long-term investment story, and therefore, only well-informed investors with surplus funds and a long-term perspective may consider investing," it said.

Kunvarji Wealth Solutions
Rating: Subscribe for long-term
"We recommend 'subscribe' to IPO with long term view only as near-term volatility expected till bottom line growth gets stabilized. Ather is operating in the growing market which will shape the future of green transportation. It is expanding its capacity with a new unit at Maharashtra. The debt burden of the company is reducing gradually and It enjoys strong parentage," it said.