Ather Energy, a manufacturer of electric two-wheelers, is scheduled to go public on April 28. However, industry analysts expressed concern on Friday about the company’s ongoing losses and slow sales development.

Since its founding in 2013 by Tarun Mehta and Swapnil Jain, Ather has never recorded a profit, even though it was one of the first companies in India’s EV market.

According to the company’s red herring prospectus (RHP), it has been losing money each year and there is no guarantee that it will ever become profitable or cost-effective.

Ather Energy reported a pre-tax loss of Rs 1,059.7 crore for the fiscal year 2023–2024. This indicates a growing disparity in its financial performance as it represents a significant rise from its FY23 loss of Rs 864.5 crore and FY22 loss of Rs 344.1 crore.

Simultaneously, the FY24 revenue of Rs 1,753.8 crore was marginally less than the FY23 revenue of Rs 1,780.9 crore.

An offer for sale (OFS) of shares valued at Rs 355 crore is part of the forthcoming IPO, which is valued at Rs 2,981 crore. The co-founders of Ather will sell 19.6 lakh shares, making a significant profit.

They only paid an average of Rs 21.09 a share for their shares. Even though the firm is losing money, they stand to gain more than 1,400 percent if the IPO is priced at the top end of the Rs 304–321 range.

Even though Ather was among the first companies to introduce electric scooters in India in 2018, it still behind more established competitors like Ola Electric, which is also having difficulties in the market.

Subscriptions for Ather’s IPO will be accepted until April 30. Both the NSE and the Bombay Stock Exchange (BSE) will list the shares.

But the company’s inability to expand in the face of intense competition raises important concerns about its future and business strategy.