EV maker Ather Energy files DRHP with SEBI a month after Ola Electric went public

Bengaluru-based electric scooter maker Ather Energy is all set to go public as it has filed a draft red herring prospectus (DRHP) with SEBI for IPO on Monday, September 9.

The development comes a month after rival Ola Electric went public on the Indian stock exchanges—NSE and BSE. Notably, Ola Electric also doubled investors' wealth within 11 days of listing.

IPO details

According to DRHP, Ather Energy aims to raise Rs 3,100 crore (nearly $370 million) through a fresh issue of shares.

Additionally, existing investors and some key shareholders will sell up to 2.2 crore equity shares, with co-founder and CEO Tarun Mehta and Swapnil Jain selling up to 10 lakh shares each.

Investors participating in the offer for sale (OFS) include Caladium Investment Pte Ltd (a subsidiary of GIC Ventures), National Investment and Infrastructure Fund II, 3State Ventures Pte Ltd, IITM Incubation Cell, and IITMS Rural Technology and Business Incubator, among others.

It’s worth noting that Hero MotoCorp, the largest external shareholder with a 37.2% stake, will not participate in the OFS.

The fresh issue and OFS shares will have a face value of Re 1, with the price band and minimum lot size to be determined in consultation with the book-running lead managers in the coming days.

Axis Capital, JM Financial, Nomura, and HSBC are the book-running lead managers for the issue.

Utilizing IPO proceeds

Ather Energy plans to use the proceeds from the IPO for capital expenditures, including the establishment of an electric two-wheeler manufacturing facility in Maharashtra, marketing initiatives, repayment of borrowing, and research and development (R&D).

In late June, the EV maker announced that it would invest Rs 2,000 crore to establish its third manufacturing plant in Chhatrapati Sambhajinagar, Maharashtra.

"Welcome to Maharashtra, Ather ! Just got done with a meeting with the Founder of Ather Energy, Shri Swapnil Jain and I’m glad to share that he informed about their great decision that Ather Energy, the leading electric scooter manufacturer, has chosen Maharashtra for its 3rd manufacturing facility in Aurangabad Industrial City (AURIC)," Deputy Chief Minister Devendra Fadnavis earlier wrote on X.

Ather Energy's financial growth

According to its DRHP filing, Ather Energy reported revenues of Rs 1,753.80 crore for FY24, a slight dip from Rs 1,780.90 crore in the previous year. 

The company’s losses also grew, reaching Rs 1,059.7 crore compared to Rs 864.5 crore last year. However, Ather saw a strong boost in sales, with volumes rising to 1,09,577 units in FY24, up from 92,093 units in FY23.

For Q1FY25, Ather reported Rs 339 crore in revenue with a net loss of Rs 183 crore.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy designs, manufactures, and sells electric two-wheelers, including popular models such as the Ather 450X, Ather 450 Plus, Ather 450S, and Ather Rizta.