Bengaluru, April 22, 2025 — Electric vehicle (EV) pioneer Ather Energy has unveiled its Red Herring Prospectus (RHP) for its highly anticipated initial public offering (IPO), marking a pivotal moment in India’s EV revolution. The IPO comprises a fresh issue of shares worth ₹26,260 million and an offer for sale of up to 11 million shares by promoters and investors. Here’s a breakdown of the company’s financial health, market position, and risks in the fast-evolving EV landscape.
IPO Details at a Glance
- Fresh Issue: Up to ₹26,260 million.
- Offer for Sale: 11.05 million shares by promoters and investors, including Hero MotoCorp.
- Price Band: To be announced two days before bidding opens.
- Listing: Proposed on BSE and NSE.
- Key Dates: Bid/offer opens April 28, closes April 30, 2025.
Financial Snapshot: Losses Persist, Revenue Growth Stalls
Ather Energy’s financials reveal a mixed picture. While the company has solidified its position in India’s EV market, profitability remains elusive.
| Metric | 9M FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|
| Revenue (₹ million) | 15,789 | 17,538 | 17,809 | 4,089 |
| Loss Before Tax (₹ million) | (5,779) | (10,597) | (8,645) | (3,441) |
| Net Cash Flow (₹ million) | (7,171) | (2,676) | (8,713) | (2,284) |
| Market Share (E2Ws) | 10.7% | 11.5% | 10.6% | 7.9% |
Key Observations:
- Stagnant Revenue: FY2024 revenue dipped marginally (1.5%) from FY2023, attributed to reduced government subsidies under the FAME scheme.
- Mounting Losses: Losses widened in FY2024 due to R&D investments and supply chain costs.
- Negative Cash Flows: Operating cash flow remains negative, raising concerns about liquidity.
Market Position: Competing in a Crowded Arena
Ather holds ~11% of India’s electric two-wheeler (E2W) market but trails behind Ola Electric (34.1%) and TVS Motor (19.4%) as of December 2024 (CRISIL).
| Competitor | Market Share (9M FY2025) | Key Strength |
|---|---|---|
| Ola Electric | 34.1% | Aggressive pricing, vast network |
| TVS Motor | 19.4% | Legacy brand trust |
| Bajaj Auto | 18.1% | Rapid model launches |
| Ather Energy | 10.7% | Premium positioning, tech focus |
Risks Highlighted in the Prospectus
- Supply Chain Vulnerabilities: Heavy reliance on lithium-ion cell imports from China and South Korea.
- Customer Complaints: 2,383 complaints in 9M FY2025, including battery and range issues.
- Regulatory Dependence: Subsidy cuts (e.g., FAME) impact pricing; 35 pending tax disputes worth ₹1,161 million.
- Battery Safety Concerns: Past incidents of battery malfunctions, though no fatalities reported.
The Road Ahead
Ather plans to use IPO proceeds to:
- Build a new factory in Maharashtra (₹9,272 million).
- Repay debt (₹400 million).
- Boost R&D and marketing (₹7,500 million and ₹3,000 million, respectively).
Expert Take:
“Ather’s premium branding and tech edge are strengths, but profitability hinges on scaling production and navigating subsidy policies,” says Arvind Singhal of TechSci Research.
With its IPO, Ather Energy aims to accelerate India’s EV adoption while addressing investor concerns about sustainability and scalability. Whether it can outpace rivals and achieve profitability will define its journey in the years ahead.
For more updates on IPOs and EVs, follow #ElectricMobility and #StockMarketNews.
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