Ather Energy Files Draft IPO Papers With Fresh Issue Worth Rs 3,100 Crore

Ather Energy Ltd. has filed its preliminary papers with the Securities and Exchange Board of India to raise funds through an initial public offering. The proposed public offering consists of fresh issue of shares aggregating to Rs 3,100 crore and an offer-for-sale component consisting of 2.2 crore shares, according to the draft red herring prospectus.

Tarun Sanjay Mehta and Swapnil Babanlal Jain, promoters of the Bengaluru-based electric scooter maker, will offload shares in the OFS portion of the offering.

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

The proceeds from the issue will be used to fund a new electric two-wheeler factory in Maharashtra, and research and development investment. Capital raised through the IPO will also be used for repaying debt and towards marketing initiatives.

Founded by IIT Madras graduates Tarun Mehta and Swapnil Jain in 2013, Ather Energy currently sells two electric scooters in India.  

The EV startup, which has so far raised a total of $445 million across 15 rounds, was valued at $560 million when Hero MotoCorp Ltd. picked up an additional 3% stake in the company by way of a secondary transaction in December last year. That deal pegged Ather Energy’s valuation at $560 million—24% less than its peak in 2022.

The Bengaluru-based company has its manufacturing facilities located near Hosur in Tamil Nadu. The plant has a total annual installed capacity of 4.20 lakh units for E2Ws and 3.79 lakh units for battery packs as at March 31, 2024.

The electric scooter maker has 208 experience centres and 191 service centres in India, according to its prospectus.

The EV manufacturer reported a net loss of Rs 1,059 crore for the year ended March 31, 2024. This compares to a net loss of Rs 864 crore during the previous financial year.

The market share of the electric two-wheeler maker rose to 11.5% in fiscal 2024, compared to a 10.6% share in the previous financial year.