Ola Electric-rival Ather Energy gets SEBI's approval for IPO
Ather Energy, a leading player in the electric two-wheeler space, has received final approval from the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). According to the firm's Draft Red Herring Prospectus, the total IPO size could be around ₹4,500 crore. The development comes after Ather Energy filed draft papers on September 9 to raise funds for a new electric two-wheeler factory in Maharashtra and reduce debt.
IPO structure and valuation expectations
Ather Energy's IPO will include a fresh issue of ₹3,100 crore worth of equity shares and an offer-for-sale of 2.2 crore equity shares by promoters and investors. Speaking to Moneycontrol, sources said the firm is targeting a valuation of about $2.5 billion through the public offering. This would be a major jump from its last fundraising round in August, which valued the firm at $1.3 billion post raising $71 million in a National Investment and Infrastructure Fund (NIIF)-led funding round.
Financial performance and IPO share distribution
In FY24, Ather Energy posted a consolidated revenue of ₹1,753 crore, a marginal 1.7% YoY decline. The company's promoters Tarun Sanjay Mehta and Swapnil Babanlal Jain will each offload 10 lakh shares in the forthcoming IPO. The rest will be offloaded by investors like Caladium Investment, National Investment and Infrastructure Fund (NIIF), Internet Fund III Pte Ltd, 3State Ventures LLP, IITM Incubation Cell and IITMS Rural Technology & Business Incubator (RTBI).
Ather Energy's plans for IPO proceeds
Ather Energy has detailed what it plans to do with the fresh issue proceeds from the IPO. The money will be used for setting up an E2W factory in Maharashtra, repaying debt, investing in research and development, marketing initiatives as well as general corporate purposes.
