The Securities and Exchange Board of India has given Ather Energy, a well-known manufacturer of electric two-wheelers in India, final approval to begin its much-anticipated Initial Public Offering (IPO).
This paves the path for Ather to join Ola Electric as the second significant electric two-wheeler business to debut on Indian stock exchanges this year.
The IPO could be valued approximately Rs 4,500 crore, according to the company’s draft paperwork. Of that amount, Rs 3,100 crore would come from new equity shares, and the remaining amount would come from an offer-for-sale of 2.2 crore shares by promoters and current investors.
After raising $71 million in a capital round headed by the National Investment and Infrastructure Fund in August, the EV manufacturer is reportedly aiming for a valuation of roughly $2.5 billion, which is nearly double what it was at the time.
On September 9, Ather submitted its draft documents with the intention of using the money raised to settle debt and build a new electric two-wheeler factory in Maharashtra.
Additionally, the funds will be utilized for marketing, R&D, and other general requirements. The company’s consolidated revenue for the 2024 fiscal year was Rs 1,753 crore, indicating a 1.7% decrease from the year before. The company thinks its expansion plans will be supported by India’s expanding electric vehicle industry, even with the little dip.
In addition to some investors, such as Caladium Investment, the National Investment and Infrastructure Fund, Internet Fund III Pte Ltd, 3State Ventures LLP, IITM Incubation Cell, and IITMS Rural Technology & Business Incubator, selling a portion of their holdings, promoters Tarun Sanjay Mehta and Swapnil Babanlal Jain will each sell 10 lakh shares under the offer-for-sale portion.
