Ather Energy Secures SEBI Approval for INR 3,100+ Cr IPO
Ather Energy, the Bengaluru-based electric vehicle (EV) startup, has received the green light from the Securities and Exchange Board of India (SEBI) to proceed with its INR 3,100+ crore initial public offering (IPO). The regulatory approval came with the issuance of SEBI’s observation letter on December 23, 2024, signaling the final go-ahead for the public listing.
Ather’s Path to Public Listing
- Ather initiated its IPO process in June 2024 by converting into a public limited company.
- In September 2024, it filed its draft red herring prospectus (DRHP) for the public issue.
The IPO will consist of two components:
- Fresh Issue: Shares worth INR 3,100 crore will be issued to raise capital for the company.
- Offer for Sale (OFS): Up to 2.2 crore shares will be offloaded by existing investors, including:
- Tiger Global
- Caladium Investments
- National Investment and Infrastructure Fund (NIIF)
- Binny Bansal’s 3 State Ventures
- Cofounders Tarun Mehta and Swapnil Jain
However, Ather’s largest stakeholder, Hero MotoCorp, which holds a 37.2% stake, will not participate in the OFS.
Use of IPO Proceeds
Ather plans to utilize the funds raised through the IPO to:
- Bolster research and development (R&D).
- Scale marketing and promotional initiatives.
- Expand production capacity and infrastructure.
- Address general corporate purposes.
Additionally, the company aims to raise INR 620 crore through a pre-IPO placement. If executed, this amount will reduce the size of the fresh issue.
Ather’s Market Position
Business Highlights:
- Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy designs and manufactures electric two-wheelers and battery packs.
- The company also operates EV charging infrastructure, further solidifying its position in India’s EV ecosystem.
- In 2024, Ather achieved unicorn status with a $1.3 billion valuation following a INR 600 crore investment from NIIF.
Performance Metrics:
- Ather sold 1.07 lakh EV two-wheelers between January and November 2024.
- Despite growth in sales, the company’s financials show:
- Net Loss: Widened by 22% to INR 1,059.7 crore in FY24 from INR 864.5 crore in FY23.
- Revenue: Declined marginally by 1.5% YoY to INR 1,753.8 crore in FY24.
Competitive Landscape
Ather will become the second EV manufacturer in India to list on the stock exchange, following Ola Electric, which raised INR 6,145.6 crore at a valuation of $4 billion in its IPO. However, Ola’s debut was lukewarm, with shares listing close to their issue price of INR 76.
Broader IPO Trends
Ather’s public listing comes amid a surge in IPO activity among Indian startups:
- In 2024, 13 tech-driven companies went public, raising over INR 29,000 crore.
- Several major players, including Infra.Market, boAt, Ola Consumer, and OfBusiness, plan to list in 2025.
Ather Energy’s upcoming IPO is a milestone in its journey and a testament to the growing prominence of the EV industry in India. With its focus on innovation, robust infrastructure, and an expanding market presence, Ather is poised to capture significant investor attention as it gears up for its public debut. This move not only strengthens its position in the competitive EV landscape but also highlights the broader momentum in India’s tech-driven public offerings.
