Indian EV startup Ather IPO sees 1.43x demand, big gains

Ather Energy’s IPO closed on April 30, 2025, and will list on May 6 with an upper price band of 321 rupee (US$3.80).

The public issue raised 2,981 crore rupee (US$352.64 million), including a fresh issue of 2,626 crore rupee (US$310.65 million) and an offer for sale of 1.1 crore shares.

The IPO was oversubscribed 1.43 times, with strong retail investor interest.

Founders Tarun Mehta and Swapnil Jain will earn 15.2x returns, selling 9.8 lakh shares each for 31.4 crore rupee (US$371.452).

IIT Madras, which incubated Ather in 2013, will also benefit significantly, with returns of nearly 40x. Early investor Tiger Global will receive 8.3x returns from selling 4 lakh shares.

🔗 Source: Inc42

🧠 Food for thought

1️⃣ Academic incubators emerge as high-return startup factories

IIT Madras’s 40X returns from Ather Energy highlight a growing trend of successful academic incubation in India’s tech ecosystem.

The IITM Incubation Cell invested minimal capital but will earn approximately ₹1 crore from selling just a fraction of its holdings, while still retaining 13.4 lakh shares post-IPO1.

This success stems from a deliberate incubation strategy that began with initial funding of ₹45 lakh from the Technology Development Board in 2013, providing critical early-stage support when commercial investors might have been hesitant1.

The incubator offered more than just capital—it provided technical expertise, mentorship, and infrastructure that proved essential for developing Ather’s complex hardware-software integration.

Academic incubators across India are increasingly becoming launchpads for deep-tech startups, with IIT Bombay, IIT Delhi, and IISc Bangalore all cultivating ventures that tackle complex engineering challenges.

2️⃣ Early-stage EV investors reap outsized returns despite sector’s profitability challenges

Tiger Global’s 8.3X return from its 2015 Series A investment in Ather demonstrates how early believers in India’s EV transition have been rewarded despite the sector’s ongoing profitability struggles.

Tiger’s investment came during a period when India’s EV market was contracting, with industry-wide sales plummeting from 100,000 vehicles in 2011-12 to just 16,000 in 2014-151.