Ather Energy IPO Subscription Status and Updates

The Ather Energy IPO received a lukewarm response from investors, with a subscription of 0.17x by the end of Day 1. The company is offering shares in a price band of Rs 304 to Rs 321 per share, with a minimum lot size of 46 shares. The Rs 2,981.06 crore IPO consists of a fresh issue of Rs 2,626.30 crore and an offer for sale of Rs 354.76 crore. Stay tuned for the latest updates on the Ather Energy IPO subscription status as the offering progresses."

Ather Energy IPO Subscription Status - Day 1

By the end of Day 1, the Ather Energy IPO had an overall subscription of 0.17x. The retail category was subscribed at 0.67x, while Non-Institutional Investors (NIIs) subscribed at 0.17x, and there were no subscriptions from the Qualified Institutional Buyers (QIBs)

The data is updated as of 5:00 PM on 28-Apr-2025.

Company Overview of Ather Energy IPO 

Ather Energy, founded in 2013 by Tarun Mehta and Swapnil Jain, is a leading player in India’s electric two-wheeler (E2W) market. It is a pure-play EV company that designs and sells E2Ws along with software, charging networks, and smart accessories, with all components designed in India. While battery packs are made in-house and motors/chargers are built by suppliers according to Ather’s designs, other key parts like motor controllers, dashboards, and chassis are outsourced for manufacturing.

As of Dec 31, 2024, Ather operates a factory in Hosur, Tamil Nadu, with an annual capacity of 420,000 E2Ws and 379,800 battery packs. Furthermore, its upcoming Factory 3.0 in Maharashtra will boost total capacity to 1.42 million E2Ws annually. With around 700 R&D employees in Bengaluru, Ather prioritizes innovation and holds hundreds of patents and trademarks. 

It uses an asset-light distribution model, operating 265 experience centers and 233 service centers in India, and expanding to Nepal and Sri Lanka. In FY24, Ather sold 109,577 E2Ws and 107,983 units in the nine months ending Dec 31, 2024. It ranked third by volume in FY24 and fourth in the nine months ending FY25, per the CRISIL Report.

Strengths of Ather Energy IPO

• Innovation
  Ather introduced industry-first features like touchscreen dashboards, OTA updates, traction control, and smart helmets. Backed by 731 engineers and 45 patents, it spent Rs. 931.6 crore on R&D between 2022-2024.

• Integration
  By designing key components in-house, Ather improved quality, cut motor controller BOM costs by 51%, and made 91 engineering upgrades in FY24.

• Software
  Powered by Atherstack, over 86% of customers use smart features like Trip Planner and drive analytics, contributing to recurring revenue with 50 %+ EBITDA margins. The app has 308,067 users.

• Efficiency
  Following an asset-light model, Ather scaled from a small Bengaluru unit to a 420,000-unit plant in Hosur, maintaining efficient working capital.

Risks of Ather Energy IPO 

• Supplier Dependence
  Ather relies on third-party suppliers for most components, making it vulnerable to supply chain disruptions.

• Financial Losses
  Despite higher E2W sales, Ather posted a Rs. 1,059.7 crore loss in FY24 and a Rs. 577.9 crore loss in the first nine months of FY25, with stagnant revenue growth and uncertain profitability.

• Import Reliance
  Dependence on imports, especially from China, exposes Ather to risks from regulatory changes and trade tensions.

• Incentive Dependency
  Ather’s pricing benefits from government subsidies under the PM E-DRIVE Scheme, which are set to reduce after FY25, potentially impacting demand.

• Low Capacity Utilization
  In the first nine months of FY24, Ather’s Hosur facility operated at just 39% (E2Ws) and 41% (battery packs), limiting efficiency and scale benefits.

Ather Energy IPO Financial Overview

In FY24, Ather sold 1.10 lakh electric two-wheelers, registering a 19% growth over FY23. However, revenue from operations declined slightly by 2% to Rs 1,753.8 crore, likely due to lower average selling prices or a shift in product mix.

The company reported an EBITDA loss of Rs 649.4 crore, a marginal improvement from Rs 686.7 crore in FY23, mainly driven by lower overall revenue. High cost of goods sold, accounting for over 85% of revenue, remains a key reason for continued losses.

In the nine months ended December 2024, Ather sold 1.08 lakh vehicles, a 45% jump year-on-year, with revenue rising 28% to Rs 1,578.9 crore. Ather’s E2W market share also strengthened, reaching 10.7% during the nine months and closing FY24 at 11.5%.

Ather Energy IPO Details

• IPO Date: April 28, 2025 to April 30, 2025

• Issue Price: Rs 304 - Rs 321 per share

• Lot Size: 46 shares

• Total Issue Size: 9,28,67,945 shares
  (amounting to Rs. 2,981.06 Cr)

• Fresh Issue: 8,18,16,199 shares

(amounting to Rs. 2,626.30 Cr)

• Offer for Sale: 1,10,51,746 shares

(amounting to Rs. 354.76 Cr)

• Allotment Date: May 2, 2025

• Listing Date: May 6, 2025

How to Apply for Ather Energy IPO

• Visit the Rupeezy app or Rupezy DOCK.

• Navigate to the IPO section on the Home Page

• Here, you can view all the IPOs with details such as market lot, minimum bid quantity, price range, and analysis.

• You can read the Red Herring Prospectus for the issue details.

• Click on Apply.

• Enter your UPI ID for payment & place the bid.

• While placing the bid, enter the cutoff price or desired price in the range specified. Select quantity as per lot size. 

• Submit to complete the order.