Ather Energy IPO: India's EV Industry Landmark Moment – Key Takeaways and Brokerage Suggestions

Updated: April 27, 2025 13:55

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Ather Energy, the backed electric vehicle (EV) company by Hero MotoCorp, will debut its highly-awaited Initial Public Offering (IPO) between April 28 and April 30, 2025. The IPO will raise ₹2,980 crore through the fresh issue and offer for sale route, representing a crucial milestone moment for India's EV sector. A comprehensive rundown follows:

IPO Details:

The IPO includes a new issue of ₹2,626 crore and an offer for sale of ₹354 crore.
The price band is between ₹304 and ₹321 per share with a minimum lot size of 46 shares for retail investors.

Brokerage Recommendations:

SMC Global Securities: Neutral due to sustained losses, over-reliance on South India, and supply-side concerns.
Nuvama: Not rated but bullish on Ather's strength in its structure, including Maharashtra factory and R&D expenditure.
Ventura Securities: Subscribe for listing gains, owing to Ather's premium positioning and growing fast-charging network.
Arihant Capital: Positive for listing gains, with references to strong brand recall and vertically integrated manufacturing.
Bajaj Broking: Subscribe for long-term investment, even for financial losses, owing to possible scale-up and strong promoters.

Growth Potential

Ather Energy is a prominent player in India's EV space, recognized for its innovative offerings and growing charging infrastructure.
The IPO proceeds will be utilized for business growth, repayment of debt, and R&D.

Market Sentiment:

The IPO has been highly sought after, with a grey market premium (GMP) of ₹5 as of April 25, 2025, reflecting modest listing gains.

Future Outlook:

Ather's emphasis on high-end electric scooters, combined with its brand and technology strength, is well-suited for sustained growth.
This IPO not only marks Ather Energy's growth story but also highlights the increasing investor optimism in India's EV space.

Sources: Economic Times, India Today, Chittorgarh

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