Ather Energy IPO: Hero MotoCorp-backed E2W maker raises ₹1,340 crore from anchor investors ahead of public issue

Ather Energy IPO: Electric two-wheeler (E2W) maker Ather Energy Ltd on Friday said it has mobilised ₹1,340 crore from anchor investors days ahead of the launch of its initial share sale for public subscription. The Ather Energy IPO opens for public subscription on Monday, April 28, 2025.

Some key anchor investors who were allocated shares include Custody Bank of Japan, Franklin Templeton, Abu Dhabi Investment Authority, Eastspring Investments, Morgan Stanley Investment Management, Societe Generale.

Ather Energy IPO anchor book

PSBI Mutual Fund (MF), Aditya Birla Sun Life MF, ICICI Prudential MF, Invesco MF, Aditya Birla Sun Life Insurance, ITI MF and Union MF are among the anchor investors. According to a circular on BSE's website, the electric two-wheeler maker allotted 4.17 crore shares to 36 funds at ₹321 apiece, the upper end of the price band. This aggregates the transaction size to ₹1,340 crore.

Ather Energy IPO details

The ₹2,981-crore public issue, with a price band of ₹304 to ₹321 a piece, will be available for public subscription from April 28 to April 30. This will be the first mainboard public issue of the current financial year (2025-26).

The IPO will combine a fresh issue of equity shares worth ₹2,626 crore with an offer-for-sale of 1.1 crore equity shares by promoters and other shareholders. Ather intends to raise funds to establish an electric two-wheeler factory in Maharashtra and reduce debt.

At the upper end of the price band, the IPO size is pegged at ₹2,981 crore, placing the company's overall valuation at ₹11,956 crore. Ather Energy Ltd is backed by Hero MotoCorp and Tiger Global. This will be the second electric two-wheeler company looking to go public after Ola Electric Mobility's ₹6,145-crore IPO in August last year. Ola Electric's IPO had a fresh issue of up to ₹5,500 crore and an OFS of up to 8.5 crore equity shares.

Apart from its IPO plans, Ather Energy has expanded its research and development capabilities. Recently, the company announced the expansion of its R&D and testing capabilities at its product testing & validation centre.

The electric two-wheeler company has set aside 75 per cent of the issue for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

The IPO's book-running lead managers are Axis Capital, JM Financial, Nomura Financial Advisory and Securities (India), and HSBC Securities & Capital Markets. The company's equity shares are expected to list on the stock exchanges on May 6.