Ather Energy Seeks IPO Approval to Fund Expansion

Electric two-wheeler manufacturer Ather Energy filed preliminary papers with Sebi for an IPO. The IPO includes a fresh issue worth Rs 3,100 crore and an Offer For Sale of 2.2 crore shares. Proceeds will fund a new factory, R&D, and other corporate purposes.

Electric two-wheeler maker Ather Energy on Monday filed preliminary papers with capital markets regulator Sebi to raise funds through an Initial Public Offering (IPO).

The proposed IPO combines a fresh issue of equity shares worth Rs 3,100 crore and an Offer For Sale (OFS) of 2.2 crore equity shares by promoters and investor shareholders, as per the Draft Red Herring Prospectus (DRHP).

Those selling shares in the OFS include Caladium Investment Pte Ltd, National Investment and Infrastructure Fund II, 3State Ventures Pte Ltd, IITM Incubation Cell, and IITMS Rural Technology and Business Incubator among others.

Proceeds from the fresh issue will be allocated for capital expenditure to establish an electric two-wheeler factory in Maharashtra, investments in research and development, marketing initiatives, loan repayment, and general corporate purposes.

This move follows Ola Electric Mobility's Rs 6,145-crore IPO in August, marking this as the second electric two-wheeler company to go public. It is also the first IPO by an automaker in India in over 20 years.

Ola Electric's IPO had a fresh issue of up to Rs 5,500 crore and an OFS of up to 8,49,41,997 equity shares.

Ather Energy, since its inception in 2013, has focused on product and technology development in India to build an E2W ecosystem. Its portfolio currently includes two product lines, the Ather 450 and the Ather Rizta, comprising seven variants in total. These are complemented by a product ecosystem that includes charging infrastructure, accessories, and the Atherstack.

Axis Capital, HSBC Securities and Capital Markets (India) Pvt Ltd, JM Financial, and Nomura Financial Advisory Securities (India) Pvt Ltd are the book-running lead managers for the issue.

(With inputs from agencies.)