Ather Energy Eyes INR 4,500 Cr IPO, To File DRHP Next Week

Electric two-wheeler maker Ather Energy is reportedly looking to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) next week for an INR 4,500 Cr IPO in a mix of a fresh issue and offer for sale (OFS).

The emobility unicorn is targeting a valuation of around $2.5 Bn for the IPO, Moneycontrol reported citing sources. 

The development comes on the heels of Ather’s competitor Ola Electric going public by raising over INR 6,145.6 Cr in total. The Bhavish Aggarwal-led startup went public at a valuation of $4 Bn, which many market experts deemed quite high.

In June, Ather’s board also passed a resolution during its annual general meeting to convert the startup into a public company from private, starting the process for the company to list on the bourses. 

Ather joined the unicorn club recently after raising INR 600 Cr ($71 Mn) from its existing investor National Investment and Infrastructure Fund (NIIF) at a post-money valuation of  $1.3 Bn.

Prior to this, it raised debt funding of INR 60 Cr (around $7.1 Mn) via non-convertible debentures (NCDs) from InnoVen Capital. Pawan Munjal-led Hero MotoCorp is one of the leading investors in the startup, owning a 40.89% stake.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy manufactures escooters and  battery packs. It also operates its own charging infrastructure. After building its market on its 450 series of escooters, the startup recently launched a family escooter series Rizta and forayed into the smart helmet category.

In June, Ather also announced setting up its third manufacturing facility in Maharashtra to manufacture escooters and battery packs. Recently, it expanded its business to Sri Lanka, marking its second overseas foray after Nepal.

Currently, in terms of escooter sales, Ather is at the fourth position in the market, behind Ola Electric, TVS Motor, and Bajaj Auto.

Ather’s total vehicle registration in August stood at 10,873 units, growing almost 52% year-on-year (YoY).

However, like Ola Electric, Ather also continues to be a loss-making entity. Its net loss widened 22.5% to INR 1,059.7 Cr in FY24, as per the annual report of Hero MotoCorp.

It is pertinent to note that the much-anticipated IPO of Ola Electric witnessed a muted market debut last month. However, the shares are currently trading over 44% higher than their listing price.