India’s leading electric two-wheeler manufacturer, Ather Energy, is reportedly gearing up for its much-anticipated initial public offering (IPO), targeting a valuation of $1.6 billion. According to Bloomberg, Ather is likely to go public as early as March or April 2025, while a separate NDTV Profit report suggests that the company will file its updated Draft Red Herring Prospectus (DRHP) next week.
Ather’s IPO Journey and Valuation Trends Ather Energy’s IPO plans have been in motion for several months. The startup previously filed its DRHP with the Securities and Exchange Board of India (SEBI) to raise over INR 3,100 crore ($375 million). The IPO will consist of:
- A fresh issue of equity shares worth INR 3,100 crore.
- An offer-for-sale (OFS) of up to 2.2 crore equity shares.
- SEBI approved the IPO in December 2024.
While the latest reports peg Ather’s IPO valuation at $1.6 billion, this is slightly above its last private valuation of $1.3 billion, achieved in August 2024 after securing INR 600 crore ($71 million) from the National Investment and Infrastructure Fund (NIIF).
However, earlier reports in January 2025 suggested that Ather was targeting a $2.4 billion valuation, indicating a potential downward adjustment in market expectations.
Comparing Ather’s IPO to Ola Electric’s Market Debut The valuation revision trend is not new in India’s EV sector. Ola Electric, another major player in the two-wheeler EV market, went public in August 2024 at a valuation of $4 billion, marking a 26% cut from its last private valuation of $5.4 billion. Due to a decline in its share price, Ola Electric’s current market capitalization has dropped to $2.6 billion.
If Ather’s IPO follows a similar trajectory, market conditions and investor sentiment will play a crucial role in determining its final listing valuation.
Ather Energy’s EV Sales Growth Ahead of IPO Despite IPO-related speculations, Ather’s sales figures have shown steady growth:
- February 2025 EV registrations: 13,055 units
- January 2025 EV registrations: 12,101 units
This consistent rise in sales indicates increasing consumer adoption and demand for Ather’s electric scooters, a crucial factor in its IPO success.
Ather Energy’s IPO will be a defining moment for India’s electric vehicle (EV) market, reflecting investor confidence in the growing EV ecosystem. While its current $1.6 billion valuation target is more conservative than initial projections, the company’s strong sales performance and SEBI approval position it well for a successful listing.
With India’s EV market booming, Ather’s IPO will serve as a key indicator of how public markets value new-age mobility startups in a competitive and evolving landscape. Investors and industry watchers will be keenly observing the final valuation, subscription rates, and post-listing performance as Ather takes its next big leap into the public domain.
