Ather Energy Set to Raise Rs 4,500 Crore Through Upcoming IPO

Bengaluru-based electric vehicle (EV) maker Ather Energy is gearing up for its initial public offering (IPO), aiming to raise Rs 4,500 crore through a combination of fresh issues and offers for sale (OFS). According to recent reports, Ather Energy is expected to file its Draft Red Herring Prospectus (DRHP) with SEBI next week, marking its move toward a public debut.

The company is best known for its high-performance electric scooters, like the Ather 450X and Ather 450 Plus It. It is targeting a valuation of $2.5 billion for this IPO. This valuation is nearly double that of the company’s last round of funding, which elevated it to unicorn status with a market value of $1.3 billion.

Recent Funding and Key Investors

In its journey, Ather Energy has raised over $570 million in funding from prominent investors, including Hero MotoCorp, GIC, Stride Ventures, and Nikhil Kamath, co-founder of Zerodha. Hero MotoCorp remains a key stakeholder, holding about 40% of Ather’s shares, with recent plans to increase its stake by 2.2% for Rs 124 crore.

Market Presence and Growth

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy has expanded its footprint across India, boasting over 1,400 charging stations in 100 cities. As of August, Ather holds a 12% market share in the EV two-wheeler space and has recorded a 51% month-on-month growth in sales, with 10,829 units sold in the past month.

Despite a rise in sales, Ather reported a net loss of Rs 1,059.7 crore for FY24, up from Rs 864.5 crore in FY23. However, its revenue remained steady at Rs 1,789 crore for FY24.

IPO Outlook

The upcoming IPO is expected to follow the footsteps of Ola Electric, which successfully went public last month and doubled investor wealth within 11 days of listing. With the new funds, Ather Energy plans to scale its business further, focusing on expanding its reach and enhancing its product offerings in the rapidly growing EV market.