Abu Dhabi, Invesco back Indian EV maker Ather ahead of IPO

EV manufacturer Ather Energy has raised 1,340 crore rupee (US$156.94 million) from anchor investors ahead of its IPO.

The shares were allocated at 321 each rupee (US$3.76), with 4.17 crore shares allotted to 36 investors.

Notable investors include SBI, Abu Dhabi Investment Authority, Invesco, Franklin Templeton, ICICI Prudential, Morgan Stanley, and Societe Generale.

Domestic mutual funds made up 49.6% of the allocation, acquiring 2.06 crore shares.

The IPO will open on April 28 and close on April 30.

It includes a fresh issue of equity shares worth up to 2,626 crore rupee (US$307.55 million), along with an offer for sale (OFS) of 1.10 crore shares valued at 354.76 crore rupee (US$41.55 million).

🔗 Source: Inc42

🧠 Food for thought

1️⃣ EV startups continue to attract capital despite financial losses

Ather Energy’s successful anchor round demonstrates strong investor confidence in the EV sector despite the company’s persistent unprofitability.

The company secured ₹1,340 crore from 36 prominent investors including SBI and Abu Dhabi Investment Authority, even though it reported increasing net losses reaching ₹10,597 million in FY241.

This funding pattern reflects what we’ve seen in global EV markets, where investors prioritize growth potential over current profitability. Ather’s revenue grew impressively from ₹4,089 million in FY22 to ₹17,809 million in FY231.

The IPO timing is notable as it’s the first in over two months in the Indian market, suggesting both investor appetite for the EV sector and Ather’s confidence in its market position despite ongoing financial challenges1.

The company’s founders stand to gain significantly, with potential returns exceeding 1,400% based on their acquisition cost of ₹21.09 per share compared to the ₹304-321 IPO price range2.

2️⃣ Product diversification driving EV market share gains

Ather Energy’s market share growth to 15% in Q4 FY2025 (up from 11% in Q3) demonstrates how targeted product expansion can accelerate growth in the competitive EV market3.