Joining Forces With Sebi, Ather Energy Sets Sights on INR 3,100 Crore in Fresh IPO

Ather Energy, a maker of electric two-wheelers, has sent its DRHP to Sebi to launch an initial public offering (IPO).

According to the DRHP, the investors and promoters would sell 2.2 crore equity shares in the anticipated first public offering (IPO), raising INR 3,100 crore.

Capital expenditure for establishing an electric two-wheeler plant in Maharashtra, investment in R&D, marketing campaigns, loan repayment, and general business objectives are among the many intended uses of the fresh issue proceeds.

Organizations such as IITM Incubation Cell, IITMS Rural Technology and Business Incubator, 3State Ventures Pte Ltd, Caladium Investment Pte Ltd, and National Investment and Infrastructure Fund II participate in the OFS.

Second Electric Two Wheeler Company to Go Public

Immediately following Ola Electric Mobility's initial public offering (IPO) of INR 6,145 crore, which was submitted in August, Ather Energy is the second electric two-wheeler startup that is looking to go public. A fresh issuance of up to INR 5,500 crore and an OFS of up to 8,49,41,997 equity shares were both part of Ola Electric's initial public offering (IPO), which was also the first issue by an automobile manufacturer in India in more than twenty years.

There are a total of seven different variations available for the Ather 450 and the Ather Rizta, which are the two product lines that are currently included in Ather Energy's inventory.

An ecosystem of products, which includes charging infrastructure, accessories, and the Atherstack, provides support for the E2Ws that are manufactured by Ather Energy. Axis Capital, HSBC Securities and Capital Markets (India) Pvt Ltd, JM Financial, and Nomura Financial Advisory Securities (India) Pvt Ltd are the companies that are in charge of the book-running for the offering.

Financial Report Card of Ather

According to the DRHP, the company sold 109,577 E2Ws during the most recent fiscal year, which is an increase over the previous fiscal year's total of 92,093 units and the previous fiscal year's total of 23,402 units. Its revenue from operations in FY24 was determined to be INR 1,753.8 crore, which is a decrease from the previous year's figure of INR 1,780.9 crore. In comparison to the previous fiscal year, when it had a net loss of INR 864.5 crore, it now has a net loss of INR 1,059.7 crore.

The OFS component will involve the sale of 10 lakh equity shares by each of the promoters, Tarun Mehta and Swapnil Jain. Both of them currently possess a stake in the company that is equivalent to 6.63 percent. On the other hand, Hero MotoCorp Ltd., which holds 37.20 percent of the company's outstanding shares, will not be selling any of them.

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Ather Energy is an Indian startup founded by Tarun Mehta and Swapnil Jain. Know more about its business model, success story, competitors, and more.

StartupTalkySarika Anand