Ather Energy files draft papers for IPO

Bengaluru-based electric two-wheeler maker Ather Energy Ltd has filed draft papers with market regulator Sebi for a ₹4,500 crore (about $535 million) initial public offering (IPO), including a fresh issue of shares to the tune of ₹3,100 crore (about $370 million) and an offer for sale (OFS) of up to 22 million shares.

Ather Energy will use the funds from the IPO to set up an electric two-wheeler factory in Maharashtra and also for research and development, according to the draft red-herring prospectus (DRHP).

The plant, which will be come up at Bidkin within Aurangabad Industrial City (AURIC), is expected to manufacture about 1 million two-wheelers and battery packs per year.

GIC Ventures through its subsidiary Caladium Investment will divest 47.8% of the total offer for sale (OFS) while Tiger Global’s Internet Fund III Pte. Ltd and 3State Ventures will offload 18.1% and 2.18% stakes, respectively, in the offer for sale. Tarun Mehta and Swapnil Jain will also participate by offering 1 million shares each.

The fresh issue and OFS will be allotted at a face value of ₹1, while the two-wheeler maker will shortly release the price band and minimum lot band in consultation with the book-running lead managers: Axis Capital, HSBC Securities, Nomura Financial, and JM Financial.

Hero MotoCorp Ltd is the largest shareholder in Ather Energy, with a 37.2% stake, but won’t participate in the offer for sale.

Co-founders Tarun Sanjay Mehta and Swapnil Babanlal Jain cumulatively hold a 13.26% stake in the company.

Founded in 2013 at the Indian Institute of Technology-Madras, Ather Energy faces direct completion from another electric mobility company Ola Electric that went public last month.

Ather recently joined the unicorn club of private companies with a valuation of over $1 billion after raising $71 million in funding from existing investor National Investment and Infrastructure Fund.

Ather has thus far raised about $500 million, out of which $125 million was raised in the past three months.

The company also disclosed its Q1 FY25 numbers and it

Ather reported ₹339 crore in revenue in the first quarter of FY25 and a net loss of ₹183 crore. In FY24, it posted a decline in revenue, which stood at ₹1,754 crore.

Its customer base rose 34% to 114,000 in FY24, according to the DRHP.