Ather Energy's ₹2,981 crore IPO — a muted debut after a tepid subscription
Ather's IPO subscribed 1.43x, listed at a 2.2% premium then slipped — what it says about EV valuations and the IPO market.
Ather Energy's ₹2,981 crore IPO — India's third-largest listing of 2025 — sailed through on the final day of bidding with a 1.43× subscription, then listed at a modest 2.2% premium before slipping.
The deal
- Offer: ₹2,981 crore (₹2,626 crore fresh + ₹354.75 crore OFS)
- Price band: ₹304–321 per share
- Subscription: 1.43× — QIBs 1.7×, retail 1.78×, NIIs only 0.66×
- Anchor book: ₹1,340 crore from 36 investors (SBI MF largest at ₹310 crore)
- Listing: May 6, 2025 at ₹328 (NSE), +2.18%; closed 8.5% lower at ₹300
Use of proceeds
- ₹927.2 crore — new manufacturing plant in Chhatrapati Sambhajinagar, Maharashtra
- ₹750 crore — R&D
- ₹300 crore — marketing
- ₹40 crore — debt repayment
The NII (high-net-worth) quota — the segment most sensitive to valuation — came in at just 66%. That's the market's clearest verdict on Ather's pricing.
What it means
Ather's tepid reception contrasted sharply with Ola's 4.27× a year earlier. The difference: market volatility, a saturated e-2W segment, and investor fatigue with loss-making EV valuations.
The EV IPO window narrowed in 18 months — from Ola's 4.27x to Ather's 1.43x. Late-stage EV funding is now priced for patience, not hype.Advertisement
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