Bengaluru-based electric scooter manufacturer Ather Energy is all set to go public as it filed a draft red herring prospectus (DRHP) with SEBI for its IPO on Monday, September 9.
The development comes a month after its rival Ola Electric went public on Indian stock exchanges NSE and BSE. Notably, Ola Electric also doubled the wealth of investors within 11 days of its listing.
Details of the initial public offering
According to DRHP, Ather Energy is looking to raise Rs 3,100 crore (nearly $370 million) through a fresh share issue.
Additionally, existing investors and some key shareholders will sell up to 2.2 million shares, with co-founder and CEO Tarun Mehta and Swapnil Jain selling up to 10 lakh shares each.
Investors participating in the Offer for Sale (OFS) include Caladium Investment Pte Ltd (a subsidiary of GIC Ventures), National Investment and Infrastructure Fund II, 3State Ventures Pte Ltd, IITM Incubation Cell and IITMS Rural Technology and Business Incubator, among others.
It is worth noting that Hero MotoCorp, the largest external shareholder with a 37.2% stake, will not be participating in the OFS.
The new issue and OFS shares will have a nominal value of Re 1, and the price band and minimum lot size will be determined in consultation with the lead order book managers in the coming days.
Axis Capital, JM Financial, Nomura and HSBC are the lead managers of the issue.
Using IPO Proceeds
Ather Energy plans to use the IPO proceeds for capital expenditure, including setting up an electric two-wheeler manufacturing plant in Maharashtra, marketing initiatives, loan repayments and research and development (R&D).
At the end of June, the electric vehicle manufacturer announced that… Invest Rs 2,000 crore to set up its third manufacturing plant at Chhatrapati Sambhajinagar, Maharashtra.
“Welcome to Maharashtra, Ather. Just met with the Founder of Ather Energy, Shri Swapnil Jain and I am happy to share that he informed me about their great decision of Ather Energy, the leading electric scooter manufacturer, choosing Maharashtra for its third manufacturing facility at Aurangabad Industrial City (AURIC),” Deputy Chief Minister Devendra Fadnavis earlier wrote on X.
Ather Energy’s financial growth
According to its filing with DRHP, Ather Energy reported revenues of Rs 1,753.80 crore for FY24, a slight drop from Rs 1,780.90 crore in the previous year.
The company’s losses also widened, reaching Rs 1,059.7 crore compared to Rs 864.5 crore last year. However, Ather saw a strong boost in sales, with volumes increasing to 1,09,577 units in FY24, up from 92,093 units in FY23.
For the first quarter of FY25, Ather reported revenue of Rs 339 crore with a net loss of Rs 183 crore.
Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy designs, manufactures and sells electric two-wheelers, including popular models like the Ather 450X, Ather 450 Plus, Ather 450S and Ather Rizta.
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