Ather Energy now plans to raise around ₹2,626cr via IPO
What's the story
Ather Energy, one of the leading names in the electric vehicle (EV) space, is gearing up for an initial public offering (IPO) between April 28 and April 30.
The company has filed its red herring prospectus (RHP) with the Securities and Exchange Board of India (SEBI), looking to raise around ₹2,626 crore via a fresh share issue.
Valuation strategy
Ather Energy adopts conservative valuation approach
Ahead of its IPO, Ather Energy has taken a more cautious approach to its valuation.
The company is aiming for a pre-money valuation of ₹9,900 crore-₹10,000 crore. Its post-money valuation is anticipated to be above ₹12,000 crore.
This cautious approach is a stark contrast to the ₹14,000 crore valuation the firm had previously aimed for.
Stake sale
Stakeholders to sell part of their holdings
In the upcoming IPO, Ather Energy's co-founders Tarun Mehta and Swapnil Jain intend to offload a part of their stakes.
Existing investors like National Investment and Infrastructure Fund Limited (NIIF) and Tiger Global Management's Internet Fund III are also likely to join the share sale.
However, Hero MotoCorp, which holds more than 37% stake in Ather Energy, has opted out of this deal.
OFS details
IPO to include OFS component
Along with the new share issue, Ather Energy's IPO will also include an offer for sale (OFS) component.
According to the RHP, this OFS will include 11,051,746 equity shares. Both the promoter group and investors are likely to participate in this portion of the IPO.
This is part of Ather Energy's strategy as it gears up for its public debut on India's stock markets.