Ather Energy raises Rs 1,340 crore from anchor investors ahead of IPO launch

Electric two-wheeler maker Ather Energy has raised Rs 1,340 crore from a roster of anchor investors, days before its highly anticipated initial public offering (IPO) opens for subscription. According to a disclosure filed with the BSE, the company allotted 4.17 crore shares at Rs 321 apiece—the upper end of its price band—to 36 institutional funds.

The list of anchor investors includes prominent global and domestic names such as Custody Bank of Japan, Franklin Templeton, Abu Dhabi Investment Authority, Eastspring Investments, Morgan Stanley Investment Management, and Societe Generale.

Domestic mutual funds like PSBI Mutual Fund, Aditya Birla Sun Life MF, ICICI Prudential MF, Invesco MF, ITI MF, and Union MF also participated in the anchor round.

IPO launch date

The Rs 2,981-crore IPO, which opens on April 28 and closes on April 30, comprises a fresh issue of equity shares worth Rs 2,626 crore and an offer for sale (OFS) of 1.1 crore shares by promoters and other shareholders.

The price band has been set at Rs 304-321 per share, with the company's post-issue valuation estimated at around Rs 11,956 crore at the upper end. The company's equity shares are slated to list on the stock exchanges on May 6.

Utilisation of IPO proceeds

This marks the first mainboard IPO of the 2025-26 financial year and the second listing by an electric two-wheeler company after Ola Electric Mobility's Rs 6,145-crore offering last year.

The Ola Electric rival intends to deploy the capital raised toward a range of strategic priorities, including setting up a new electric two-wheeler plant in Maharashtra (Rs 927.2 crore), repaying debt (Rs 40 crore), expanding R&D (Rs 750 crore), scaling marketing efforts (Rs 300 crore), and supporting general corporate operations.

The utilisation of these funds will occur over the fiscal years 2026 to 2028. Ather is also expected to continue investing in its in-house battery technology and Atherstack, its proprietary software platform that powers features such as navigation, ride analytics, and safety.

Backing from notable investors

Backed by marquee investors such as Hero MotoCorp and Tiger Global, Ather Energy has steadily expanded its presence in India's premium electric vehicle segment.

The Bengaluru-based company offers two flagship product lines—the Ather 450 series and the recently launched Ather Rizta—complemented by in-house developed software, Atherstack, which provides navigation, ride analytics, and safety features. Alongside its IPO plans, Ather has been scaling its research and development efforts. The company recently expanded its product testing and validation centre.

As per the IPO structure, 75% of the shares are reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors. Axis Capital, JM Financial, Nomura Financial Advisory and Securities (India), and HSBC Securities and Capital Markets are managing the public offering.