Ather Energy, an electric two-wheeler manufacturer founded in 2013 by Tarun Mehta and Swapnil Jain, is preparing for its initial public offering (IPO) to raise Rs 3,100 crore. The company has filed its Draft Red Herring Prospectus (DRHP) with SEBI to secure funds for its future growth.
Ather Energy IPO Details
The IPO will include a fresh issue of equity shares worth Rs 3,100 crore and an offer for sale (OFS) of 2,20,00,766 equity shares by current shareholders. Notable promoters Tarun Mehta and Swapnil Jain will each sell one million shares. Other major shareholders such as Caladium Investment Pte Ltd, National Investment, Infrastructure Fund II, Internet Fund III Pte Ltd, 3State Ventures Pte Ltd, IITM Incubation Cell, and IITMS Rural Technology and Business Incubator will also participate in the OFS.
Use of Funds
The funds from the fresh issue will be used for several key purposes:
- Rs 927.2 crore will be invested in building a new E2W (electric two-wheeler) manufacturing facility in Maharashtra. This new Factory 3.0 will increase production capacity to 1.42 million E2Ws.
- Rs 750 crore will go towards research and development to enhance technological leadership.
Rs 378.2 crore will be used to repay or prepay outstanding debts.
- Rs 300 crore will be allocated for expanding marketing efforts to boost market presence.
- The remaining funds will be used for general corporate purposes.
Ather Energy might also conduct a pre-IPO placement of up to Rs 620 crore, which could reduce the size of the fresh issue. The company’s shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Company Background
Ather Energy manufactures its electric scooters and battery packs at its facility in Hosur, Tamil Nadu. By March 2024, the company claims an annual capacity of 420,000 E2Ws and 379,800 battery packs. The company is also known for its innovations in charging infrastructure and software, operating the Ather Grid, a network of 1,973 fast chargers across 233 cities.
Ather’s product range includes the Ather 450, aimed at performance enthusiasts, and the Ather Rizta, designed for family use. With revenues of Rs 1,753.8 crore for Fiscal 2024, Ather is well-positioned for growth, backed by its experienced management team and commitment to sustainable mobility.
