Ather Energy, one of India’s leading electric two-wheeler makers, is moving closer to its highly anticipated IPO. In a latest development toward its stock market debut, the Bengaluru-based company recently converted its compulsory convertible preference shares (CCPS) into equity.
This recent development indicates that the EV maker is accelerating its listing process, with reports suggesting an April launch.
If Ather Energy goes public, it will be the second electric two-wheeler company to do so after Ola Electric, which raised Rs 6,145 crore in its IPO last year.
Here’s a look at five key factors to watch as Ather prepares to hit the stock market.
Ather Energy: CCPS conversion
One of the biggest indicators of an impending IPO is Ather Energy’s conversion of over 1.73 crore outstanding CCPS into 24.04 crore fully paid-up equity shares. As mentioned earlier, this stands for compulsory convertible preference shares. According to a Registrar of Companies (RoC) filing accessed by PTI, this decision was approved by Ather’s Board of Directors on March 8, 2025.
As per SEBI’s Issue of Capital and Disclosure Requirements (ICDR), companies must convert all CCPS into equity before filing the Red Herring Prospectus (RHP). This step clears the path for Ather to proceed with its IPO filing and listing process.
Ather Enery: IPO size and structure
According to PTI, Ather’s IPO will consist of a fresh issue of Rs 3,100 crore worth of equity shares and an offer-for-sale (OFS) of 2.2 crore shares by existing investors and promoters.
The fresh issue will likely be used to set up an electric two wheeler manufacturing plant in Maharashtra and reduce debt. Meanwhile, the OFS allows early investors and stakeholders to exit or reduce their holdings.
This structure is similar to Ola Electric’s IPO, which raised Rs 5,500 crore via fresh shares and included an OFS where founder Bhavish Aggarwal sold 3.79 crore shares.
Will Ather’s IPO find favour with investors?
Ather Energy has built a brand in India’s premium electric scooter segment, competing with players like Ola Electric, TVS iQube, and Bajaj Chetak.
However, market response to electric vehicle (EV) stocks has been mixed.
Ola Electric’s IPO saw decent demand but faced post-listing volatility due to concerns over profitability, cash burn, and subsidies. Investors will keenly watch Ather’s financials, especially its revenue growth, losses, and funding plans, before deciding to subscribe.
Ather’s R&D and expansion
Beyond its IPO plans, Ather is also expanding its research and development (R&D) capabilities. In February, the company announced the expansion of its testing and validation centre, The Juggernaut, in Bengaluru’s Begur, as per PTI.
The company is focusing on improving battery technology, range efficiency, and vehicle software to stay ahead in the EV race. These R&D investments could play a crucial role in determining Ather’s long-term growth potential and investor confidence.
The bigger picture: India’s EV IPO boom?
If Ather’s IPO goes as planned, it could mark the beginning of a new wave of EV stock listings in India. The upcoming IPO of this EV maker and its stock market debut will set the tone for upcoming EV startups looking to raise capital from public markets.
Additionally, given the recent FAME subsidy cuts and policy shifts in India’s EV space, investors will closely watch how Ather plans to look forward to the changing regulatory landscape.