Ather Energy Ltd is an electric two-Wheeler manufacturer has taken a step towards its IPO after converting its outstanding compulsory convertible preference shares (CCPS) into equity. It will be the second electric two-wheeler company to go public following Ola Electric's IPO in August last year.
Ather Energy has taken a step toward its IPO. According to a PTI report, Ather Energy's board approved a resolution on March 8, 2025, to convert more than 17.3 million outstanding CCPS into 240.4 million fully paid-up equity shares.
Under SEBI's Issue of Capital and Disclosure Requirements (ICCDR) regulations all CCPS must be converted into equity before submitting the Red Herring Prospectus (RHP). This step indicates that Ather Energy is moving swiftly toward its IPO which could be among the first to launch in FY26.
After launching its IPO Ather Energy will become the second electric 2-wheeler company to go public, following Ola Electric which raised Rs 6,145 crore in its stock market debut last year.
According to PTI, Ather's IPO will include a fresh issue of equity shares worth Rs 3,100 crore along with an offer-for-sale (OFS) of 2.2 crore shares. This structure is similar to Ola Electric's IPO which raised Rs 5,500 crore through fresh shares and featured an OFS where Bhavish Aggarwal sold 3.79 crore shares.
As per PTI, Ather is also strengthening its research and development (R&D) efforts. In February the company revealed plans to expand its testing and validation center. The company is prioritising advancements in battery technology, range efficiency & vehicle software to maintain competition in the EV market.
Investor sentiment toward EV stocks has been mixed. Ola Electric's IPO generated good demand, but it experienced post-listing fluctuation due to concern over profitability, cash burn & subsidies. Before investing in Ather's financials investors will closely evaluate revenue growth, losses & funding strategy.
If Ather Energy's IPO proceeds as expected it could pave the way for a new wave of EV stock listings in India. The company's stock market debut will be key indicator for upcoming EV startups seeking to raise funds from public investors.
Ather energy has established itself in India's premium electric scooter market competing with brands like Ola Electric, TVS iQube and Bajaj Chetak.
