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 0.52 per cent and pre-IPO, IIT-M (through the Incubation Cell and Rural Technology and Business Incubator) owns around 15,58,170 shares. Out of this, it is offloading 35,241 shares in the OFS. Considering the IPO’s upper price band of ₹321 and a weighted average cost of acquisition of ₹8.3 per share (as per RHP), IIT-M and its incubators are likely to clock returns of over 32,000 per cent. With the institute not completely exiting Ather, the realised and unrealised gains run up to Rs 48 crore 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.

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Published on April 24, 2025