Ather Energy Files DRHP Papers to Raise INR 3,100 Cr; Plans Major Expansion Ather Energy may also conduct a pre-IPO placement of up to INR 620 crore, potentially reducing the size of the fresh issue accordingly.
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Founded in 2013 by Tarun Mehta and Swapnil Jain, electric two-wheeler manufacturer Ather Energy Limited is preparing for its initial public offering (IPO) worth INR 3,100 crore.
Ather Energy's product lineup includes two key models: the Ather 450, which caters to performance-seeking customers, and the Ather Rizta, designed for family-oriented convenience. Known for its innovation and indigenous design, it has filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise significant funds for future growth and development.
The IPO will comprise a fresh issue of equity shares amounting to INR 3,100 crore and an offer for sale (OFS) of 2,20,00,766 equity shares by existing shareholders.
Notably, key promoters Tarun Mehta and Swapnil Jain will each offload one million equity shares. Other major shareholders, including Caladium Investment Pte Ltd and National Investment, Infrastructure Fund II, Internet Fund III Pte Ltd, 3State Ventures Pte Ltd, IITM Incubation Cell, and IITMS Rural Technology and Business Incubator, will also participate in the OFS, collectively selling a substantial portion of their holdings.
Ather Energy plans to allocate the proceeds from the fresh issue strategically to support its long-term expansion. A significant portion—INR 927.2 crore—will be directed towards establishing a new E2W manufacturing facility in Maharashtra. The upcoming Factory 3.0 aims to expand its production capacity to 1.42 million E2Ws once completed.
The company will also invest INR 750 crore into research and development, further strengthening its technological leadership in the sector. In addition, INR 378.2 crore will be used to repay or prepay outstanding debts, while INR 300 crore will go toward expanding Ather's marketing efforts to increase its market presence. The remaining funds will be utilised for general corporate purposes.
Ather Energy may also conduct a pre-IPO placement of up to INR 620 crore, potentially reducing the size of the fresh issue accordingly. The company's shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The bookrunning lead managers for the IPO include Axis Capital, HSBC Securities and Capital Markets (India) Private Limited, JM Financial, and Nomura Financial Advisory and Securities (India) Private Limited.
The company manufactures its electric scooters and their battery packs at its facility in Hosur, Tamil Nadu. As of March 2024, Ather claims to have an installed annual capacity of 420,000 E2Ws and 379,800 battery packs. Ather's ecosystem extends beyond E2Ws, with innovations in charging infrastructure and software. The company operates the Ather Grid, a fast-charging network for two-wheelers, boasting 1,973 fast chargers across 233 cities.
In addition, its home charging solutions are sold alongside the E2Ws, enhancing customer convenience. Ather's asset-light distribution model includes over 208 experience centers and 191 service centers in India, as well as operations in Nepal.
With revenues of INR 1,753.8 crore in Fiscal 2024, the company is well-positioned for growth, supported by its experienced management team and a commitment to innovation and sustainable mobility.
