Ather Energy Gets SEBI Nod For INR 3,100+ Cr IPO

All decks have been cleared for Ather Energy’s public listing as the Securities and Exchange Board of India (SEBI) has greenlit the electric vehicle (EV) maker’s plans for its initial public offering (IPO). 

As per SEBI website, Ather received the observation letter from the markets regulator on December 23. In SEBI’s parlance, issuance of an observation letter implies approval for the public offering.

With all the approvals in place, the Bengaluru-based startup is now tipped to become the second EV maker in the country to list on the bourses, after Ola Electric. 

Ather kickstarted its IPO proceedings in June 2024 after it turned into a public limited company. In September, the electric two-wheeler maker filed its draft red herring prospectus (DRHP) for over INR 3,100 Cr IPO. 

The proposed public issue will comprise a fresh issuance of shares worth INR 3,100 Cr and an offer for sale (OFS) of up to 2.2 Cr shares. 

Tiger Global, Caladium Investments, National Investment and Infrastructure Fund (NIIF), Binny Bansal’s 3 State Ventures, and cofounders Tarun Mehta and Swapnil Jain will offload their stakes via the OFS. However, Ather’s biggest shareholder, auto giant Hero MotoCorp with a 37.2% stake, will not participate in the OFS component. 

The original equipment manufacturer (OEM) was reportedly targeting a valuation of around $2.5 Bn for its IPO. Ather plans to use the fresh proceeds from the public issue to shore up R&D, marketing initiatives, infrastructure, production initiative and general corporate purposes.

As per the DRHP, Ather plans to raise INR 620 Cr through a pre-IPO placement. If such placement is indeed undertaken, the amount will be deducted from the total fresh issue size.

Founded in 2013 by Mehta and Jain, Ather designs and manufactures electric two-wheelers and battery packs. It also owns and operates charging infrastructure. Earlier this year, the EV giant entered the unicorn club after it raised INR 600 Cr from its existing investor NIIF at a post-money valuation of  $1.3 Bn.

Ather sold 1.07 Lakh EV two wheelers between January and November 2024. 

On the financial front, Ather’s consolidated net loss widened over 22% to INR 1,059.7 Cr in the financial year 2023-24 (FY24) from INR 864.5 Cr in the previous fiscal. Revenue from operations declined a marginal 1.5% year-on-year (YoY) to INR 1,753.8 Cr during the fiscal year under review.

The IPO approval comes months after rival Ola Electric listed on the bourses and raised INR 6,145.6 Cr at a valuation of $4 Bn. The Bhavish Aggarwal-led company had a muted public debut, with its shares listing at INR 75.99 apiece on the BSE as against its IPO issue price of INR 76.

That said, Ather’s move to list on the bourses comes at a time when a growing number of new-age tech companies are making a beeline for the stock exchanges. The year 2024 saw 13 such companies go public and raise over INR 29,000 Cr.

Meanwhile, over 20 new-age tech companies, including segment giants like Infra.Market, Ola Consumer, boAt, OfBusiness, have set their eyes on a D-Street listing in 2025.