Ather Energy files for Rs 3,100-crore IPO: key points to know

The proposed IPO is a combination of a fresh issue of equity shares worth Rs 3,100 crore and with an offer for sale (OFS) of 2.2 crore equity shares by promoters and investors shareholders, as per the draft red herring prospectus (DRHP).

By ETtech | Updated: Sep 09, 2024, 03.48 PM IST

Electric two-wheeler maker Ather Energy on Monday filed preliminary papers for its initial public offering (IPO) with capital markets regulator Securities and Exchange Board of India (Sebi). This comes weeks after the successful market debut of its main rival Ola Electric.

ET had reported on September 6 about Ather's IPO plans.

Here are key things to know:

The proposed IPO is a combination of a fresh issue of equity shares worth Rs 3,100 crore and with an offer for sale (OFS) of 2.2 crore equity shares by promoters and investors shareholders, as per the draft red herring prospectus (DRHP).

Cofounder and CEO Tarun Sanjay Mehta will be selling up to 1 million shares or 10 lakh. Hero MotoCorp, which holds a 37.2% stake in Ather, will not sell shares in the IPO.

The company will use funds from the fresh issue for capital expenditure to establish an electric two-wheeler factory in Maharashtra, investment in research and development, marketing initiatives, repayment of loan and for general corporate purposes, as per the draft papers.

Ather Energy is a pure-play EV company and designs all its products in India. Launched in 2013, the electric two-wheeler maker currently has a portfolio of two product lines -- the Ather 450 and the Ather Rizta -- comprising a total of seven variants. Its E2Ws are complemented by a product ecosystem, which involves charging infrastructure, accessories and the Atherstack.

Ather is India's fourth-largest electric two-wheeler maker by volume, following Ola Electric, TVS Motor, and Bajaj Auto. Last month, the company sold 10,830 e-scooters, a 51% rise from a year earlier, capturing a market share of 12.2%, according to government database Vahan.
With Mehta, cofounder Swapnil Jain will also part-sell his stake in the IPO.
Among investors, Tiger Global, GIC, Binny Bansal's Three State Ventures will also sell their shares on the OFS window.
The company turned unicorn last month following a $71-million funding from NIIF, after which it was valued at $1.3 billion.

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