Ather Energy Ltd, a leading electric two-wheeler manufacturer, announced on Friday that it has raised ₹1,340 crore from anchor investors just days ahead of its upcoming initial public offering (IPO), which opens for public subscription on Monday, April 28, 2025.
Key institutional investors who participated in the anchor round include Custody Bank of Japan, Franklin Templeton, Abu Dhabi Investment Authority, Eastspring Investments, Morgan Stanley Investment Management, and Societe Generale. Domestic investors such as PSBI Mutual Fund, Aditya Birla Sun Life MF, ICICI Prudential MF, Invesco MF, Aditya Birla Sun Life Insurance, ITI MF, and Union MF also took part. According to a circular posted on the BSE website, Ather Energy allocated 4.17 crore shares to 36 institutional investors at ₹321 per share, the top end of the IPO price range, raising a total of ₹1,340 crore.
The total IPO size stands at ₹2,981 crore, with a price band set between ₹304 and ₹321 per share. Public subscription will run from April 28 to April 30, marking the first mainboard IPO of the financial year 2025–26. The offering includes a fresh equity issue worth ₹2,626 crore and an offer-for-sale (OFS) of 1.1 crore shares from existing shareholders and promoters. The proceeds will be used to establish a new electric two-wheeler manufacturing facility in Maharashtra and reduce outstanding debt.
At the upper price band, the IPO values Ather Energy at around ₹11,956 crore. The company, which counts Hero MotoCorp and Tiger Global among its major backers, is the second electric two-wheeler firm to go public following Ola Electric Mobility’s ₹6,145 crore IPO in August 2024. Ola’s IPO included a ₹5,500 crore fresh issue and an OFS of 8.5 crore shares.
In addition to its IPO plans, Ather Energy has recently enhanced its research and development capabilities, expanding its product testing and validation infrastructure.
As per regulatory guidelines, 75% of the IPO is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors. Axis Capital, JM Financial, Nomura, and HSBC are the lead managers of the issue. Ather Energy’s shares are expected to be listed on stock exchanges on May 6.
