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Ather Energy IPO: Loss-making EV firm promises 1,400% returns for its founders

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Ather IPO Promises Big Gains for Founders

Ather Energy’s upcoming initial public offering (IPO), which opens on April 28, is already causing ripples in the market ahead of its official launch. Hyped as losses stack up and the company tells of huge gains for founders, the electric scooter company, which has been in the red financially since launching in 2013, has piqued the interest of retail investors and market experts alike. The ₹2,981 crore IPO also comes with a fresh issue of ₹2,626 crore and an offer for sale of nearly ₹355 crore, by which, its founders — Tarun Mehta and Swapnil Jain plans to sell 19.60 lakh shares cumulatively.

The founders’ valuation jump is significant. They had their weighted average cost of acquiring the shares at just ₹21.09 per share. The IPO price band is set at ₹304 to ₹321 per share, and their holdings are likely to yield them returns of more than 1,422% at the upper end. This means a multibagger exit for the co-founders, among the highest seen in the recent startup IPOs.

For context: Founded in 2013, Ather enters one of the India’s electric two-wheeler early entry points. The first e-scooter was launched in 2018 and has achieved a solid brand presence, competing with rivals that include Ola Electric, TVS Motor and Bajaj Auto. Currently, Ather has an 11.5% market share in India’s EV two-wheeler space, making it the third largest player in the space by sales volume.

The company continues to run at a loss financially, though. According to its red herring prospectus (RHP), in FY24, Ather Energy posted a loss before tax of ₹1,059.7 crore, compared to ₹864.5 crore in FY23 and ₹344.1 crore in FY22. The top line numbers haven’t shown much of a growth potential either, with FY24 top line coming at ₹1,753.8 crore, marginally lower than ₹1,780.9 crore in FY23. The stagnant growth and persistent losses have cast doubt on its prospects for turning a profit in the near term.

Indeed the opening of losses has attracted heavy weights like Hero MotoCorp and Tiger Global as investors for the firm, which in itself is a positive vote in the future of the firm. These institutional backers seem to be betting on Ather’s long-term strategy, from its innovation-focused orientation to the expansion of its footprint. Ather plans to deploy considerable portion of its IPO proceeds to scale up production, especially at a new electric two-wheeler factory it is setting up in Maharashtra. The cash will also go toward repaying debt, which may relieve some of the financial burden the company currently has.

Since day one, the founders, Tarun Mehta and Swapnil Jain, have been the face of the brand. Ather’s vision and hard work helped it emerge as a familiar name in to space which has seen a rapid evolution in last few years. The impending financial windfall is viewed by many as a reward for taking a risk sooner and building the brand equity they’ve helped to create.

Yet investor sentiment remains to be cautious. While Ather’s backstory and growth prospects signal a compelling growth narrative, the fact the company can’t secure a break-even well after a decade of operating is a big red flag.

The company filings cakewalks around it – “Ather has incurred significant losses in the past, and we expect to continue to incur losses for the foreseeable future”, the company clearly stated. While such honesty should be appreciated, it’s also a reminder that the company is one bad quarter away from bankruptcy and the IPO was always a gamble. Yet Ather’s IPO remains to be a marker moment for the Indian EV sector.

It’s the first mainboard issue of the new financial post-Covid year and is seen as a litmus test for how the market views the EV investments. Ather is largely supported, has a strong brand value and early mover advantage in the market, and thus it is highly awaited. But now, Ather is under pressure. The IPO subscription window is open for 3 days and would end on April 30.

Ather plans to list on BSE and NSE. The company would now be demanded to satisfy shareholder expectations regarding financial performance milestones. The listing would be watched by institutional and retail investors. It would be seen as a proxy for market sentiments for the EV space which struggles with profitability.

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Sourabh Gupta

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MG’s Cyberster: India’s Upcoming Premium Electric SUV Set to Launch in July 2025

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MG Cyberster: India’s Premium Electric SUV Coming July 2025

A Bold Step Into India’s Luxury EV Market

So, MG is about to bring out something pretty cool — the Cyberster, a premium electric SUV, expected to launch around July 2025. It’s their way of stepping up in India’s electric vehicle game and offering something that’s not just green, but also stylish and packed with tech.

EVs are getting popular here, and MG wants to be part of that wave, especially for folks who want a good-looking, comfy ride that’s loaded with modern features.

Striking Design Meets Cutting-Edge Technology

We don’t have all the info yet, but the Cyberster looks sharp. Think sleek and sporty, something that’ll catch eyes on the road.

Inside, expect lots of screens, smart features, and safety tech — basically, everything you’d want to make your drive smooth and fun. Whether it’s a quick city run or a weekend escape, this car’s aiming to make every trip enjoyable.

Performance That Packs a Punch

If you’re paying for a premium electric SUV, you want it to perform, right? While details are still under wraps, MG usually doesn’t disappoint. Expect a good driving range and enough power to make driving fun.

And with fast charging, you won’t be stuck waiting around forever — a big plus for busy folks.

What the Cyberster Means for Indian Consumers

This car means more choice for buyers who want a premium EV. The market is heating up, and it’s great because it gives you options that fit your style and budget.

MG is known for giving good value, so this might be a premium ride without the crazy premium price tag.

Growing Competition: A Win for Buyers

More companies entering the EV space means the competition’s getting fierce — Tata, Mahindra, Hyundai, and now MG all want your attention.

That means better cars, better prices, and more charging stations popping up, making EVs easier to own.

MG’s Vision for India’s EV Future

The Cyberster is just the start for MG. They’re clearly aiming to be a big player in India’s EV scene by giving buyers stylish, tech-packed cars.

As India moves toward greener transport, cars like this will help make electric vehicles the new normal.

 

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Sourabh Gupta

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India’s EV Market Heats: More Players, More Competition

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India EV market competition

The Electric Vehicle Battle Is Just Getting Started

You know how things are changing fast with electric vehicles here in India? Well, it’s no longer just a couple of companies in the game. Tata and Mahindra have been leading for a while, but now Maruti, Toyota, and Hyundai are jumping in too. It’s turning into a proper race, and that’s great news for anyone thinking about buying an EV.

More players mean more choices, and when companies compete, it usually means better deals and cooler cars for us.

New Entrants Bring Fresh Energy

Maruti Suzuki is like the go-to brand for most Indian families because their cars are affordable and reliable. Now, if they start selling EVs, it’s going to make electric vehicles a lot more reachable for everyday folks.

Then you have Toyota and Hyundai, which have been working on electric cars globally for years. They’re bringing that know-how to India, which means better technology and cars designed to handle our roads and conditions.

This fresh blood is going to push everyone to do better, which is a win for all of us.

What This Means for Consumers

For buyers, this is the best time to consider an EV. You’ll get a wider choice of vehicles — from simple and affordable models to fancy ones packed with features.

Also, with so many companies competing, expect better batteries that last longer, faster charging times, and prices that won’t scare you away.

Charging stations will become more common, making it easier to own and use an EV without stress.

Challenges for Established Players

Tata and Mahindra have done well so far, but now the heat’s on. They’ll need to keep improving their cars and customer service to stay ahead.

More competition means prices might get friendlier, and cars will keep getting better, which is good news for everyone.

The Road Ahead: A Win for India’s Green Future

All this competition will speed up EV adoption, which means cleaner air and less pollution.

With more companies investing in EVs, we’ll see more charging points, better batteries, and more jobs related to green technology.

The future looks electric, and it’s shaping up to be an exciting ride.

 

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Sourabh Gupta

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Tata Motors Sets Sights on Dominating 50% of India’s EV Market

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Tata Motors Aims for 50% Share of India’s EV Market

A Bold Ambition in a Growing Industry

Tata Motors isn’t just aiming to be in the EV race — they want to lead it. A recent ET Auto report says Tata wants to grab half of India’s electric vehicle market, which is a pretty big deal.

India’s EV scene is growing fast. More people are thinking about electric cars because petrol prices keep climbing, and folks want cleaner air. With all this happening, Tata’s shooting for the top spot, wanting to hold a massive share of the market.

Where Tata Motors Stands Today

Right now, Tata is the go-to name when it comes to EVs in India. The Nexon EV is one of the best-selling electric SUVs in the country. They’ve also got other models like the Tiago EV and Tigor EV that cover different budgets and needs.

But Tata knows it can’t just sit back and relax. Other brands like Mahindra, MG, and Hyundai are also pushing hard. Tata’s got to keep coming up with new stuff and get better if they want to stay ahead.

How Tata Plans to Achieve Its 50% Goal

So, how do they plan to take over half the market? They’ve got a few things lined up:

Expanding Its EV Lineup

Tata’s working on some cool new electric cars like the Harrier EV, Curvv EV, and the fancy Avinya. These options will give customers more choices, whether they prefer something small and practical or large and luxurious.

Building More Charging Stations

One of the biggest worries about EVs is charging. Tata’s working with Tata Power to set up more chargers across cities and towns. The easier it is to charge, the more people will want to buy EVs.

Making Batteries in India

Batteries are the priciest part of EVs, and importing them adds to the cost. Tata wants to make batteries right here in India, which should help bring prices down.

Going After Fleets and Government Buyers

Tata’s not just focusing on people buying cars for themselves. They’re also selling EVs to taxis, delivery companies, and government fleets. That’s a smart move because these buyers buy in bulk.

Challenges Ahead

It won’t be a smooth ride, though. Tata still has some bumps to cross:

  • Battery supply might not always keep up with demand.
  • Other companies are catching up fast.
  • Not all towns have enough charging points yet.
  • Convincing people outside cities to switch to EVs takes time.

The Road Ahead

Tata wants to own half of India’s EV market, and while that’s a huge goal, they have the right plan and the brand to pull it off. For buyers, this means better cars and more choices soon. For India, it’s a cleaner, greener future.

 

Article By
Sourabh Gupta

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