Ola Electric-rival Ather Energy plans IPO by Diwali 2024
Indian electric two-wheeler start-up Ather Energy is gearing up for its initial public offering (IPO). It has plans to get listed on Dalal Street by Diwali 2024 or early 2025, according to CNBC-TV18. The company is backed by Hero MotoCorp, India's largest two-wheeler maker by volume. It has reportedly started seeking input on the IPO plan and valuations and is expected to appoint bankers by March 2024.
Ather's growth and market share
Ather Energy was established in 2013 by IIT Madras graduates Tarun Mehta and Swapnil Jain. It has sold over 1.73 lakh scooters so far and currently holds a 12% market share in the electric two-wheeler segment. The company ranks among the top four electric scooter makers in India, alongside Ola Electric, Bajaj Auto, and TVS Motor Company. Ather is set to begin deliveries of its high-performance 450 Apex scooter and plans to launch a new family model by May 2024.
Ather's pre-IPO plans and expansion strategy
Ather Energy's IPO plans were previously delayed due to a reduction in FAME subsidies but are now back on track. An industry source said, "Ather is not looking to wait for profitability but will target a revenue run rate of Rs. 3,500-4,000 crore before going for an IPO." The company may also consider an additional funding round before public listing. Ather wants to launch 15-20 new stores each month and have at least 400-450 shops by the end of 2024.
Ola Electric's IPO in early January 2024
Ather-rival Ola Electric is also eyeing an IPO. It is preparing to file a Draft Red Herring Prospectus (DRHP) with SEBI before December 20, this year. The firm plans to raise $700 million via IPO and has enlisted Kotak Mahindra Capital and Goldman Sachs for the process.
