Ola-rival Ather Energy files for IPO, aims to raise ₹3,100cr
What's the story
Ather Energy, a leading Indian electric two-wheeler manufacturer, has submitted a draft red herring prospectus for an initial public offering (IPO), to the Securities and Exchange Board of India (SEBI).
The company plans to raise ₹3,100 crore through this IPO.
Ather Energy is backed by Hero MotoCorp and competes with Ola Electric in the electric scooter market in India.
Share sale
IPO to include sale of up to 22 million shares
The IPO will involve the sale of up to 22 million shares by investors and some top shareholders.
The funds raised from this public offering will be utilized for capital expenditure, and research and development purposes.
Specifically, Ather Energy plans to use the proceeds to establish an electric two-wheeler factory in Maharashtra.
Management
Axis Capital and JM Financial to manage IPO
Axis Capital and JM Financial have been appointed as the book-running lead managers for Ather Energy's IPO.
The company's decision to go public comes at a time when India is witnessing a surge in demand for electric vehicles, particularly two-wheelers.
This move is expected to provide Ather Energy with the necessary capital to expand its operations and enhance its product offerings.