When Ather Energy rang the bell on its IPO debut this week, the spotlight wasn’t just on the electric vehicle maker’s stock price—it was also on a quiet but powerful player behind its early days: IIT Madras.
In a defining moment for India’s academic-led startup ecosystem, the IIT Madras Incubation Cell (IITMIC) has turned its early backing of Ather into a massive 40x return—transforming a ₹1.25 crore investment into approximately ₹50 crore. This isn’t just a windfall; it’s a validation of what happens when academia believes in entrepreneurship early and sticks with it.
Ather’s IPO: Modest Debut, Massive Impact
Ather Energy, the Bengaluru-based EV startup behind India’s smart electric scooters, listed at ₹328.10—just above the IPO price band of ₹321. The stock closed at ₹307.08, marking a muted debut amid market volatility. Despite the lukewarm listing, Ather successfully raised ₹2,981 crore, backed by strong institutional interest.
A College Bet That Paid Off
Back in 2013, Ather was just an idea in the minds of Tarun Mehta and Swapnil Jain—two students at IIT Madras. The institute didn’t just cheer them on from the sidelines. It provided funding, infrastructure, and incubation support through IITMIC and its Rural Technology and Business Incubator (RTBI).
That support translated into a 5% stake in the fledgling startup. Though diluted over time to around 0.5%, the value of that holding surged at IPO to an estimated ₹50 crore. For IIT Madras, this is not just a return on investment—it’s a return on belief.
“This kind of outcome shows that institutions don’t just educate—they can build,” said a senior IITMIC team member.
What It Means for India’s Startup Culture
Ather’s IPO highlights a powerful shift. India’s leading institutions are no longer just talent pipelines—they’re becoming venture builders. IIT Madras took a bet not just on an idea, but on its own students—and the results speak volumes.
This success could inspire other educational institutions to take a more active role in shaping the startup ecosystem—not just as mentors but as early stakeholders.
And let’s not forget, others benefited too. Tiger Global exited with over 8x gains. The co-founders themselves sold a portion of their shares for over 15x returns. Meanwhile, Hero MotoCorp, which owns a 38% stake in Ather, stayed put—signaling long-term belief in the EV player’s journey.
Ather’s Next Lap
The road ahead for Ather won’t be without bumps. With shrinking government subsidies and rising competition, the challenges are real. But so is Ather’s ambition. The funds raised from the IPO are set to power new manufacturing units and fuel innovation in R&D.
For India’s EV story, this is just the beginning. And for institutions like IIT Madras, it’s a reminder that backing bold ideas can change not just balance sheets, but industries.
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