Ola electric rival Ather Energy gets SEBI's approval IPO launch

Ather Energy, one of India’s well-known electric two-wheeler makers, has received final approval from the Securities and Exchange Board of India to launch its long-awaited Initial Public Offering (IPO).

This clears the way for Ather to become the second major electric two-wheeler company to list on Indian stock exchanges, following Ola Electric’s entry earlier this year.

IPO to be worth around 4,500 crore

According to the company’s draft papers, the IPO could be worth around Rs 4,500 crore, with Rs 3,100 crore coming from new equity shares and the rest from an offer-for-sale of 2.2 crore shares by promoters and existing investors.

According to the media reports, the EV maker is aiming for a valuation of about $2.5 billion, almost double what it was in August when it raised $71 million in a funding round led by the National Investment and Infrastructure Fund.

Setting up a new EV factory

Ather filed its draft papers on September 9, aiming to use the proceeds to set up a new electric two-wheeler factory in Maharashtra and pay off debt.

The money will also be used for research and development, marketing and other general needs. In the 2024 financial year, the company reported consolidated revenue of Rs 1,753 crore, showing a slight drop of around 1.7% compared to the previous year. Despite the minor decline, the company believes the growing market for electric vehicles in India will support its expansion plans.

Promoters Tarun Sanjay Mehta and Swapnil Babanlal Jain will each sell 10 lakh shares under the offer-for-sale portion, and some investors, including Caladium Investment, the National Investment and Infrastructure Fund, Internet Fund III Pte Ltd, 3State Ventures LLP, IITM Incubation Cell and IITMS Rural Technology & Business Incubator, will also offload parts of their holdings.