Bengaluru based electric two wheeler manufacturer, Ather Energy, has filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise over INR 3,100 Cr through an initial public offering (IPO).
The IPO will include a fresh issue of shares worth INR 3,100 Cr and an offer-for-sale (OFS) of 2.2 Cr equity shares.
Key investors, including Caladium Investments, National Investment and Infrastructure Fund II, Internet Fund III, will offload their shares in the OFS.
Caladium will offer up to 1.052 crore shares, National Investment and Infrastructure Fund II up to 46.1 lakh shares and Internet Fund III up to 40 lakh shares.
Both cofounders Tarun Mehta and Swapnil Jain will each sell up to 10 lakh shares.
Additional sellers include 3State Ventures up to 4.8 lakh shares, IITM Incubation Cell with 3.1 lakh shares, IITMS Rural Technology and Business Incubator with 41,910 shares, and individuals Amit Bhatia and Karandeep Singh with 18,531 shares and 13,311 shares, respectively.
However, Hero MotoCorp, Ather’s largest shareholder with a 37.2% stake, will not sell any shares in the IPO.
The e-mobility unicorn is also eyeing an additional INR 620 Cr via a pre-IPO placement. If successful, the fresh issue size will be adjusted accordingly. Ather is targeting a valuation of $2.5 Bn for its public listing.
Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy has grown to become the fourth-largest electric scooter maker in India, trailing behind Ola Electric, TVS Motor, and Bajaj Auto.
In August, Ather sold 10,873 units, marking a 52% YoY increase in sales. Despite the sales boost, Ather reported a widening net loss of INR 1,059.7 Cr for FY24, compared to INR 864.5 Cr in FY23.
Revenue also dropped slightly to INR 1,753.8 Cr due to a reduction in FAME-II subsidies.
₹927 crores from the IPO will be used to fund Ather’s new manufacturing facility in Chhatrapati Sambhajinagar, Maharashtra, which is set to commence production by May 2026 with a target capacity of 0.5 million electric two-wheelers.
Additionally, funds will support research and development (R&D), marketing, and general corporate purposes.
Ather’s IPO follows in the footsteps of rival Ola Electric, which recently went public, raising INR 6,145.6 Cr at a $4 Bn valuation.
