Ather Energy Files for IPO, Aims to Raise Rs 3,100 Crore

PC: Moneycontrol 

Ather Energy is one of the leading electric two-wheeler companies that have been in the news lately for filing its DRHP with the Security Exchange Board of India, SEBI, about its forthcoming Initial Public Offering, popularly known as an IPO. The company now joins the rank of the second electric two-wheeler EV maker after Ola Electric went public recently.

The company plans to also issue fresh equity shares aggregating up to Rs 3,100 crore, or about $370 million, besides an Offer For Sale  of up to 2.2 crore equity shares, according to the DRHP. GIC Ventures, Tiger Global, 3 States Ventures, and co-founders Tarun Mehta and Swapnil Jain are among the leading investors selling equity shares.

All in all, Hero MotoCorp has the single largest external shareholder stake at 37.2 per cent, followed by GIC (Caladium Investment) and NIIF with 15.04 per cent and 10.29 per cent, respectively. Shock. Hero MotoCorp to stay away from OFS. Interestingly, Hero MotoCorp will not participate in the OFS, raising eyebrows among industry observers.

The book-running lead managers to the IPO are Axis Capital, HSBC Securities, Nomura Financial, and JM Financial. As per the DRHP, Ather proposes to utilize the net proceeds of the fresh issue of shares towards the capital expenditure for setting up their E2W factory, debt repayment, research and development, and marketing efforts.

With the new round of funding, Ather has become a part of the unicorn club and secured a place among the front runners in the electric vehicle space, alongside Softbank-backed Ola Electric. As per the regulatory filings, the company has reported Rs 339 crore in revenue with a net loss of Rs 183 crore in Q1 FY25, describing its growth trajectory and investments it is making for future initiatives.

Ather posted revenue of Rs 1754 crore in FY24, while expanding its customer base by as much as 34% to 1,14,000. The DRHP also went on to say that the company is working on supply-chain diversification, given the geopolitical tensions. As such, the imports of raw materials from China jumped to 28% in FY24 from 10% in FY23.

In comparison, Ather’s competitor Ola Electric posted Rs 1,644 crore revenue in Q1 FY25, with a net loss decline of 17%. Ather had captured 9% market share in two-wheeler EVs by Q1 FY25, coming second after Ola, the leader with 49%.

As Ather Energy gears up for an initial public offering and expands further into the electric vehicle space, the financial performance of the company, its strategic partnerships, and its market positioning will be watched with great interest by both experts and investors.