Ather Energy Gears Up For IPO: Electric 2-wheeler Company Files DRHP With SEBI To Raise Rs 3,100 Crore

Ather Energy, the electric two-wheeler manufacturer backed by Hero MotoCorp, has announced its plans to go public with an initial public offering (IPO) that aims to raise Rs 3,100 crore. This development marks a significant step for the company as it seeks to expand its footprint in the electric vehicle (EV) market. The announcement, detailed in a draft red herring prospectus filed on Monday, comes just a month after its larger rival, Ola Electric, made a successful debut on the stock exchanges.

The IPO will feature a fresh issue of shares worth Rs 3,100 crore and an offer for sale (OFS) of up to 22 million shares by various investors and promoters. Among those participating in the OFS are key figures such as Tarun Sanjay Mehta and Swapnil Babanlal Jain, who will each offload 1 million equity shares. Additionally, corporate shareholders including Caladium Investment Pte Ltd, National Investment and Infrastructure Fund II, and 3State Ventures Pte. Ltd will also be selling portions of their stakes.

The funds raised from the IPO are set to be directed towards several strategic objectives. A significant portion will be allocated to establishing a new manufacturing facility in Maharashtra's Chattrapati Sambhaji Nagar district, a region with a high electric two-wheeler (E2W) penetration and a robust automotive supplier base. This new plant aims to boost Ather Energy's production capacity and meet growing demand.

In addition to the capital expenditures for the new facility, a portion of the funds will support ongoing research and development (R&D) efforts. Ather Energy has been focusing on innovation in the electric two-wheeler segment and continued investment in R&D.

Currently, Ather Energy operates its manufacturing facility in Hosur, Tamil Nadu. The new plant in Maharashtra represents an expansion to cater to the increasing demand for electric scooters in the region and to leverage the local supplier base. The expansion is expected to enhance the company's production capabilities and operational efficiency.

Ather Energy is a notable player in the electric two-wheeler sector, known for its innovative electric scooters. The company's IPO comes at a time of heightened interest in electric vehicles, following Ola Electric's successful stock market entry. The competition in the electric scooter market is intensifying, and Ather Energy's IPO is seen as a move to consolidate its position and accelerate growth.

Upon completion of the IPO, Ather Energy's equity shares are proposed to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Axis Capital and JM Financial have been appointed as the book-running lead managers for the IPO, while Link Intime India Pvt Ltd will serve as the official registrar of the issue. These appointments are expected to ensure a smooth and efficient offering process.