Latest news with #Atherstack
NDTV
2 days ago
- Automotive
- NDTV
Ather To Reveal EL EV Platform, New Concept Models In August 2025
Ather Energy has announced the third edition of its Community Day. Based on the announcement, the event will be held by the end of August 2025. Following the tradition, the electric two-wheeler manufacturer will make some major revelations at this event concerning its product. Specifically, the EV maker plans on revealing its new EL platform along with a few concept models during the event, along with a few other new updates. The EL platform of the brand is meant to underpin new electric scooters. It uses a new powertrain and electronics, along with elements of the battery and Atherstack from the current Ather 450 platform. This platform will be used for new models meant for domestic and international markets while controlling the cost. Chances are, the new concept models to be revealed will be underpinned by this platform. However, the brand has not divulged any details on the subject as of now. Presently, the brand's lineup consists of models based on the 450 platform. Additionally, the Ather Community Day will see the introduction of the brand's next-generation of fast chargers. With this, the brand aims to make charging convenient and more efficient. There will also be an upgraded version of its software stack, Ather Stack 7.0. The new software is expected to bring significant tech upgrades and improvements for the electric scooters of the brand. During the Community Day from last year, which took place on April 6, 2024, the electric two-wheeler manufacturer revealed the Ather Rizta. This was marketed as the first family scooter of the brand. They also used the opportunity to unveil the Halo smart helmet and the launch of AtherStack 6.0.
Mint
28-04-2025
- Automotive
- Mint
Is Ather's IPO a smarter bet than Ola in a market running low on charge?
After a two-month hiatus, India's primary market is revving back to life with an electric twist. Bengaluru-based Ather Energy, one of the country's earliest electric two-wheeler manufacturers, is set to launch its ₹ 2,981 crore initial public offering (IPO). Backed by automotive giant Hero MotoCorp and marquee investor Tiger Global, Ather's listing comes amid choppy market conditions and a cautious investor climate following Ola Electric's underwhelming market debut. Ola Electric hit the 20% upper circuit on its debut in August but has since slipped, delivering a negative return of over 34% from its listing day high. Ather's offering includes a fresh issue of ₹ 2,626 crore and an offer for sale (OFS) worth ₹ 354.76 crore, priced between ₹ 304 and ₹ 321 per share. This pegs Ather's post-issue valuation at around ₹ 12,500 crore—a trimmed figure from its earlier target of around ₹ 14,000 crore. The lower valuation reflects a reduced OFS, as several early backers chose to hold on to their stakes, signalling long-term faith in Ather's growth trajectory. But can this premium two-wheeler electric vehicle brand convince investors it's a smarter bet than Ola in a market that's still figuring out its electric future? Also read Backed by giants, bleeding cash—is Ather Energy ready for IPO? Ather has not only managed to match traditional power with its 450 model, but its focus on innovation has fueled a string of industry-firsts, from cloud integration and an intuitive touchscreen dashboard with navigation to smart helmet connectivity and "guide-me-home" lights, establishing its premium edge. The company has ramped up its research and development spending, investing ₹ 238.8 crore, which is 15% of revenue in nine months (9MFY25) compared to 13% in 9MFY24. The focus of this investment is on its proprietary Atherstack software and new models like the Ather Rizta. 'As the EV industry is heavily reliant on research and innovation, securing early-stage funding and the ability to refine technology are critical to creating differentiated customer experiences and achieving market acceptance," highlights Saji John, senior research analyst, Geojit Investments. 'In the long run, the companies that succeed will be those offering a compelling value proposition, superior user experience, and reliable service." Falling unit sales & regional risks Despite strong fundamentals, Ather has cracks to address. Its revenue per vehicle has dipped from ₹ 1.58 lakh in FY22 to ₹ 1.43 lakh in FY24—a red flag that suggests either pricing pressure or a pivot toward lower-margin models. Its asset-light business also gives Ather an edge over others. 'In contrast to Ola, which is positioned as a mass-market scooter brand, Ather has adopted an asset-light business model that provides greater agility over time, particularly since it does not manufacture battery cells," noted John. 'This enables Ather to focus on the premium segment, prioritising high-quality user experiences, " he added. There is so far some comfort on the valuation front as Ather seems to be entering the market with its feet on the ground. Its price-to-sales (P/S) ratio–an alternate valuation since the company is loss-making–stands at 0.8 for the nine months ending December 2024, far more reasonable than listed peers like TVS Motor, Bajaj Auto, and even Ola Electric. Mrunmayee Jogalekar, auto and FMCG research analyst from Asit C Mehta Investment Interrmediates, however, suggests caution while reading this metric. 'Ola Electric's IPO was valued at 6.7x P/S at the time of the issue (based on FY24 sales). However, since the listing just under a year ago, shares of Ola Electric have been on a downward spiral, with current P/S at 4x (based on annualised FY25 sales). With this experience fresh in investors' minds, Ather's issue could see challenges." 'Ather's offer is valued at 5.7x (based on annualised FY25 sales). At these valuations (on P/S basis), these pure-play electric OEMs are quoting higher compared to some of the traditional 2w OEMs, which now have EV businesses housed within the larger entities," he added. Also read Beyond the tariff truce: Where can investors find lasting protection? Where Ather also stands out, is in its capital discipline. Its cash burn ratio– the ratio of total cash spent to total revenue earned from the company's first revenue until it achieves Ebitda positivity or the present date– of 0.6 beats Ola (0.7) and Tesla (1.5), thanks to a leaner business model and cost controls. New-age companies, in their crucial pre-scaling phase, often experience a "cash burn", a period where spending outpaces earnings. This isn't necessarily a red flag, but rather the cost of laying a robust foundation: intensive investment in product innovation, building core capabilities, establishing brand presence, and often significant outlays for manufacturing and talent acquisition. 'We've built platforms carefully, and as they matured, we focused on gross margins and reduced losses," Tarun Mehta, executive director & CEO told Mint in an interview. 'Our pricing discipline and software sales have helped protect margins. In FY25, 86% of our buyers opted for paid software, contributing nearly 6% of revenue at a 53% Ebitda margin." Furthermore, Ather's heavy reliance on southern India, which accounts for 61% of its sales with limited traction elsewhere and negligible exports, poses a significant risk. This regional concentration increases vulnerability to local disruptions and constrains broader growth potential. Also read Boom to brakes: Bulk and block deals fizzle out amid market volatility With a massive share, the company has consistently positioned itself as a leader for several quarters. On expanding footprints, Mehta says his company has gained share in Gujarat from 5% to 25% and Maharashtra recently and is still expanding. 'At 260 stores, we're far behind peers with 700+ outlets. This leaves massive room for scaling," he added. But the road ahead isn't that smooth. The electric two-wheeler market is now a battlefield, with traditional internal combustion engine (ICE) giants like Bajaj Auto and TVS Motor aggressively ramping up EV offerings. Ather's early-mover advantage is fast eroding as larger players leverage brand trust , deep pockets, and scale. This could squeeze Ather's margins, force higher marketing spends, and delay profitability. That said, Ather's focus on the premium e-2W segment, scope for software monetisation with scale-up and a capital-efficient strategy gives the company an edge. 'There are levers for improving unit economics driven by new vehicle platforms, reducing the bill of materials, localisation and operating leverage," notes Jogalekar. However, he feels that scaling up to adequate volumes is dependent not just on internal strategies, but also on the EV penetration trajectory, which has seen a slower climb in nine months to December (9MFY25). 'Increasing EV focus by legacy players such as Bajaj Auto and TVS Motors is heating the competition. This creates uncertainty around the timeline of attaining profitability, even at the EBITDA level. Any impact of tariffs or resulting supply chain disruptions could hamper the profitability journey even more," he added further. Moreover, the auto segment's revenue streams including the two-wheelers are currently under considerable strain, which is a direct consequence of a noticeable deceleration in demand. This slowdown isn't isolated; it's fueled by a confluence of factors, notably consumers reining in discretionary purchases amidst sluggish wage growth. The recovery in this space hinges on broad-based demand revival. The hopes are pinned on the growing EV penetration. According to John, 'Ather is well-positioned to ride the EV tailwinds with its differentiated tech stack, growing distribution, and focus on profitability." 'We expect the premium e-2W segment to grow at a 40% CAGR over the next five years." Electric two-wheelers offer innovative features and a compelling total cost of ownership advantage over ICE vehicles, leading to a surge in penetration to 5.1% in FY24. The cost of economics is improving across the board. The average battery pack price has fallen from $806/kWh in FY13 to $115/kWh in FY24, and is expected to drop further to $80/kWh by 2030, as per Crisil . This trend will shrink the cost gap between EVs and ICE vehicles, aiding adoption.
Business Standard
23-04-2025
- Automotive
- Business Standard
Ather Energy IPO price band set at Rs 304-321; issue opens April 28
EV maker gears up for stock market debut with Rs 2,626 crore fresh issue to fund expansion, R&D, and new factory rollout. Electric two-wheeler maker Ather Energy has set the price band for its initial public offering (IPO) at Rs 304 to Rs 321 per equity share. The IPO will open for public subscription on April 28 and close on April 30, with the anchor investor allocation scheduled for April 25. Investors can bid for a minimum lot size of 46 equity shares, and in multiples thereof. The public issue comprises a fresh equity raise of Rs 2,626 crore, alongside an offer for sale (OFS) of 1.1 crore shares. Promoters Tarun Sanjay and Swapnil Babanla, along with other institutional shareholders, will divest part of their stakes through the OFS. Ather Energy plans to deploy the IPO proceeds toward a range of strategic goalsincluding establishing a new manufacturing facility in Maharashtra, repaying debt, investing in research and development, boosting marketing efforts, and covering general corporate expenses. Founded as a pure-play electric vehicle (EV) company, Ather Energy designs and sells premium electric scooters, including the Ather 450 and Ather Riztaspanning seven variants. The company manufactures battery packs in-house using lithium-ion cells sourced from global suppliers, while outsourcing other components such as electronics and chassis. Ather has also developed its own proprietary software platform, Atherstack, which powers features like navigation, ride analytics, safety functions, and productivity toolscementing its position as a tech-first EV player. As of December 2024, Ather Energy holds an estimated 11% share of Indias electric two-wheeler market, positioning itself as one of the key challengers in the rapidly expanding EV landscape.
Time of India
22-04-2025
- Automotive
- Time of India
Ather Energy announces IPO dates, breaking two-month lull in India's primary market
Electric scooter maker Ather Energy has announced its plans to go public, where it will launch its public offer on April 25. The issue will be available for public subscription till April 30. This will be the first mainboard IPO to hit the markets in over two months. The IPO comprises a fresh equity sale of Rs 2,626 crore and also an offer for sale (OFS) of 1.1 crore shares. Under the OFS, promoters Tarun Sanjay and Swapnil Babanla will offload part stakes along with other corporate selling shareholders. The price band for the public offer is not yet announced. Funds raised from the IPO will be used for capital expenditure for establishment of an electric two-wheeler factory in Maharashtra, India, repayment of debt, investment in research and development, expenditure towards marketing and general corporate purposes. Ather Energy is a pure play EV company that sells electric two-wheelers. The company also makes battery packs in-house using lithium-ion cells procured from suppliers and outsources the manufacturing of all other vehicle components, such as electronics and chassis. Its electric two-wheeler portfolio comprises two product lines, the Ather 450 and the Ather Rizta, with seven variants. The Atherstack is in-house developed software, which provides features related to navigation, analytics, ride assistance, safety and productivity. The company commands just about 11% market share in the electric two-wheeler market, as of December 2024. Given its premium positioning with plans to bridge key products, analysts expect the company to achieve a big leap in terms of growth Launches like Rizta and a new scooter should materially expand the addressable market given that current volumes are constrained due to limited performance segment numbers in its flagship 450 series. However, distribution too is skewed, where the South market comprises 48% of Ather experience centers, contributing 68% of the company's volumes in FY24. Critical factors that can impact the company's plans and prospects include slow ramp-up and competition from large 2W OEM, and demand incentive scale-down. According to the CRISIL Report, India is the largest global motorised two-wheeler market by volume with 18.4 million units sold in FY24, of which 16% were exports. In the nine months ended December 2024, exports accounted for 17% of the overall two-wheeler sales in India.
Economic Times
22-04-2025
- Automotive
- Economic Times
Ather Energy announces IPO dates, breaking two-month lull in India's primary market
Electric scooter maker Ather Energy has announced its plans to go public, where it will launch its public offer on April 25. The issue will be available for public subscription till April 30. This will be the first mainboard IPO to hit the markets in over two months. ADVERTISEMENT The IPO comprises a fresh equity sale of Rs 2,626 crore and also an offer for sale (OFS) of 1.1 crore shares. Under the OFS, promoters Tarun Sanjay and Swapnil Babanla will offload part stakes along with other corporate selling shareholders. The price band for the public offer is not yet announced. Funds raised from the IPO will be used for capital expenditure for establishment of an electric two-wheeler factory in Maharashtra, India, repayment of debt, investment in research and development, expenditure towards marketing and general corporate Energy is a pure play EV company that sells electric two-wheelers. The company also makes battery packs in-house using lithium-ion cells procured from suppliers and outsources the manufacturing of all other vehicle components, such as electronics and electric two-wheeler portfolio comprises two product lines, the Ather 450 and the Ather Rizta, with seven variants. The Atherstack is in-house developed software, which provides features related to navigation, analytics, ride assistance, safety and productivity. ADVERTISEMENT The company commands just about 11% market share in the electric two-wheeler market, as of December 2024. Given its premium positioning with plans to bridge key products, analysts expect the company to achieve a big leap in terms of growthLaunches like Rizta and a new scooter should materially expand the addressable market given that current volumes are constrained due to limited performance segment numbers in its flagship 450 series. ADVERTISEMENT However, distribution too is skewed, where the South market comprises 48% of Ather experience centers, contributing 68% of the company's volumes in factors that can impact the company's plans and prospects include slow ramp-up and competition from large 2W OEM, and demand incentive scale-down. According to the CRISIL Report, India is the largest global motorised two-wheeler market by volume with 18.4 million units sold in FY24, of which 16% were exports. In the nine months ended December 2024, exports accounted for 17% of the overall two-wheeler sales in India. (You can now subscribe to our ETMarkets WhatsApp channel)
