Highlights
Ather Energy’s IPO Plans: A Significant Step for Electric Two-Wheelers
Electric two-wheeler manufacturer Ather Energy has submitted its Red Herring Prospectus (RHP) to the market regulator SEBI as part of its Initial Public Offering (IPO) proposal. This offering includes a new equity share issuance worth Rs 2,626 crore, alongside an Offer for Sale (OFS) of up to 1.1 crore equity shares from existing shareholders, including the founders and early backers of the company.
Promoters Tarun Mehta and Swapnil Jain are each set to sell up to 9.8 lakh shares. Other participants in the OFS include Tiger Global, Caladium Investment (GIC), National Investment and Infrastructure Fund II, as well as seed investors from IITM Incubation Cell and IITMS Rural Technology.
To facilitate this process, Ather has secured the services of Axis Capital, HSBC, JM Financial, and Nomura as the Book Running Lead Managers. This IPO is being launched under Regulation 6(2) of SEBI’s ICDR regulations, as Ather Energy does not satisfy the profitability criteria needed for a mainboard listing under Regulation 6(1).
Company Overview and IPO Details
Established in 2013, Ather is known for its high-performance electric scooters, with the 450X being a standout model. The upcoming IPO is an important milestone for India’s electric vehicle (EV) sector and is expected to enhance investor confidence in clean mobility initiatives. The IPO is scheduled to open on April 28, 2025, and will close on April 30, 2025, with the anchor book commencing on April 25. Shares will be traded on both BSE and NSE, with NSE as the primary stock exchange.
The RHP reveals that Hero MotoCorp is the main shareholder in Ather Energy, holding a 38.19% stake in the firm. Caladium Investment (GIC) follows with a 15.43% share. The National Investment and Infrastructure Fund (NIIF) and Tiger Global have stakes of 14.22% and 6.56%, respectively. Co-founders Mehta and Jain each possess a 6.81% ownership in the company.
Despite being Ather’s first entry into public markets, the company has acknowledged potential risks linked to fresh listings in its RHP. Funds raised from the new equity issue are earmarked for business growth, product innovation, and alleviating debt. Meanwhile, Ola Electric, the first EV startup to go public, has experienced a significant market downturn, with its valuation plummeting by nearly 66% from its peak.
In the initial nine months of FY25, Ather sold 108,000 vehicles, achieving a revenue of Rs 1,578.9 crore. However, the company also recorded a loss of Rs 579.6 crore during this timeframe. For the complete fiscal year ending March 2024, Ather reported a revenue of Rs 1,753 crore alongside a loss of Rs 1,062 crore.
