The Bengaluru-based startup, backed by Hero MotoCorp, is expected to be valued at ₹9,900 crore pre-IPO and ₹12,500 crore post-issue, the people said. The offering will comprise a fresh issue of ₹2,626 crore and an offer for sale of around ₹350 crore by existing investors including Tiger Global Management, National Investment and Infrastructure Fund III (NIIF), 3State Ventures Internet Fund III, and IITM.
This will be the first major IPO since Quality Power Equipments raised ₹859 crore on February 18.
Axis Capital, HSBC Securities, JM Financial and Nomura are the book-running lead managers for the issue.
Ather has reportedly trimmed its valuation to about $1.4 billion from a previously estimated $2 billion, reflecting continued tepid sentiment in the secondary market. The company plans to use the IPO proceeds for capital expenditure, R&D, marketing, and debt repayment. Last year, Ather raised ₹600 crore in a funding round led by NIIF at a valuation of $1.3 billion.
Ather’s offering will be closely watched, especially after rival Ola Electric’s listing last year set valuation benchmarks for India’s electric two-wheeler market. Ola currently trades at about 6 times its EV/sales, while Tesla commands a multiple of around 6.8 times. Ather has about 11% market share in the Indian electric two-wheeler market, as of December.Ather is also betting big on capacity expansion. It plans to invest ₹2,000 crore in a new manufacturing facility in Maharashtra, with an annual capacity of one million vehicles and battery packs.So far, in 2025, just nine companies have raised ₹15,723 crore via IPOs-well below the ₹1.6 lakh crore mobilised by 91 companies in all of 2024.
