Ather Energy Files RHP, Cuts IPO Size

Ather Converts Preference Shares To Equity, Likely To Float IPO In April

SUMMARY

EV major Ather Energy has filed its red herring prospectus (RHP) with SEBI

The EV company has cut its IPO size amid the ongoing volatility in the equities market. Its public issue will comprise a fresh issue of up to INR 2,626 Cr and offer for sale of up to 1.1 Cr shares

Ather Energy is eyeing a valuation of about INR 12,000 Cr for the IPO, sources told Inc42

EV major Ather Energy has filed its red herring prospectus (RHP) with SEBI, paving the way for it to become the first new-age tech company to go public in 2025.

The EV company has cut its IPO size amid the ongoing volatility in the equities market. Its public issue will comprise a fresh issue of up to INR 2,626 Cr and offer for sale (OFS) of up to 1.1 Cr shares.

As per its DRHP, filed in September last year, Ather Energy’s IPO was to comprise a fresh issue of up to INR 3,100 Cr and OFS of up to 2.2 Cr shares.

Ather Energy is eyeing a valuation of about INR 12,000 Cr ($1.4 Bn) for the IPO, sources told Inc42. The issue will open on Monday (April 28) for public bidding and close on Wednesday (April 30).

Earlier, reports said that Ather Energy was eyeing a valuation in the range of $1.6 Bn (about INR 13,600 Cr) to $2.4 Bn (about INR 20,400 Cr) for the public issue. However, it seems to have decided to take a cut amid the prevailing uncertainty in the market.

Cofounders Tarun Mehta and Swapnil Jain are among those who will offload shares in the OFS. NIIF, Tiger Global, Caladium Investment are among the investors who will sell shares via the OFS. However, Hero MotoCorp, Ather Energy’s largest shareholder with around 387% stake, won’t sell any shares.

Meanwhile, in its RHP, Ather Energy provided its financials for the nine-months ended December 2024. Its net loss reduced 25.56% to INR 577.9 Cr from INR 776.4 Cr in the year-ago period. The company’s revenue from operations zoomed 28.32% to INR 1,578.9 Cr in the three quarters of FY25 from INR 1,230.4 Cr in the same period last year.

Notably, Ather Energy’s two-wheeler sales have been on a steady uptick in recent times. In March, the company’s EV registrations stood at 15,446 units, up 29.3% from 11,944 units in February.

Ather Energy will become the second Indian EV startup to go public after Ola Electric, which made its public market debut in August last year.

Unlike Ola, which has a significant presence in both electric two-wheelers and battery manufacturing, Ather Energy’s focus remains on high-performance electric scooters and its charging network.

However, Ather Energy has shown consistent growth in revenue and a notable reduction in net loss.