Ather Energy, a prominent electric two-wheeler firm, has filed its draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) for an initial public offering (IPO) on Monday. This development makes Ather the second two-wheeler EV maker to make its debut on the stock exchange, following Ola Electric’s listing last month.
Key Highlights of the IPO
- Ather Energy aims to raise funds through a fresh issue of equity shares aggregating up to Rs 3,100 crore (approximately $370 million) and an offer for sale (OFS) of up to 2.2 crore equity shares.
- GIC Ventures through its subsidiary Caladium Investment will divest 47.8% of the total offer for sale (OFS), while Tiger Global and 3 States Ventures will offload 18.1% and 2.18% of the offer for sale.
- Tarun Mehta and Swapnil Jain, the co-founders of Ather, will also participate in the OFS by offering 10 lakh shares each.
- The fresh issue and OFS will be allotted at a face value of Re 1, and the company will decide the price band and minimum lot band in consultation with the book-running lead managers shortly.
About Ather Energy
Ather Energy has recently turned unicorn after securing $71 million in funding from existing investor National Investment and Infrastructure Fund. The Bengaluru-based firm has raised over $500 million, with $125 million coming in the last three months. Ather has reported Rs 339 crore in revenue and a net loss of Rs 183 crore in the first quarter of FY25. The company’s customer base has increased by 34% to 1,14,000 in FY24, and Ather had 9% market share as of Q1 FY25.
Utilization of IPO Proceeds
The proceeds from the fresh issue of shares will be used on capital expenditure to establish their E2W factory, repayment of borrowing, research and development, and expenditures towards marketing.