Ather Energy IPO marks landmark moment for IIT-Madras Incubation Cell

Dr Tamaswati Ghosh, CEO, IIT Madras Incubation Cell

EV maker Ather Energy’s initial public offering (IPO) is a milestone not just for the company but also for India’s leading deep tech startup hub IIT-Madras Incubation Cell (IIT-M IC).

Ather Energy will be IITM IC’s first portfolio company to go public in validation for the incubator’s efforts. Analysis of Ather’s Red Herring Prospectus (RHP) shows that this also brings lucrative returns for the marquee institute.

As per the RHP, IIT-M IC was allotted a 5 per cent stake in Ather as per a 2013 incubation agreement for the assistance provided in the form of physical infrastructure, mentorship and support. Subsequently, as Ather raised fresh capital over the years, the stake went down to around 0.5 per cent and pre-IPO, IIT-M IC owned around 15,58,170 shares (across its two entities IITM IC and IITM RTBI). Out of this, it is offloading 35,241 shares in the OFS.. Based on the weighted average cost of acquisition of these shares as per the RHP and the IPO’s upper price band of ₹321, IIT-M is likely to clock returns of over 32,000 per cent, as per businessline calculations.

“Ather Energy’s upcoming IPO marks a historic milestone for IIT Madras and its nodal incubator, IITM Incubation Cell, as it becomes the first IPO from our portfolio of 457 deep-tech startups. Last year, Ather became the second unicorn from our portfolio. Ather’s journey began as one of the earliest pioneers in India’s electric two-wheeler segment, a field that was largely untapped at the time. This is a heartwarming reflection of the immense potential of India’s youth and the capabilities of the IITM startup ecosystem,” Dr Tamaswati Ghosh, CEO, IIT Madras Incubation Cell, told businessline. “As one of our earliest incubatees in 2014, IITM alumni and Ather co-founders Tarun and Swapnil quickly became role models for aspiring entrepreneurs,” Ghosh said.

Over the last 12 years, IITM IC has incubated 457 deep-tech startups, collectively valued at over ₹50,000 Crores (based on investments raised from VCs), with two unicorns (Uniphore and Ather).

However, data from YNOS Venture Engine shows that Ather’s listing is not the first instance of an academic incubator-backed IPO. There are 12 such ventures overall, however drone tech startup ideaForge, which is backed by IIT-Bombay and IIM-Ahmedabad is the only other deep tech startup.

More Like This

Published on April 24, 2025