Home-grown electric two-wheeler manufacturer Ather Energy has filed its draft red herring prospectus (DRHP) with the capital market regulator Sebi to launch its initial public offering (IPO). This consists of a fresh issue of shares worth Rs 3,100 crore, as per the official document.
The IPO includes an offer for sale of up to 22 million shares by investors and promoters.
Meanwhile, the company is planning to utilize around Rs 927.2 crore of the net proceeds for setting up an electric two-wheeler factory in India's Maharashtra state, and for research and development.
“Rs 9,272 million of the net proceeds are intended to be utilized for funding our capital expenditure requirements to construct Phase I of Factory 3.0 at Chhatrapati Sambhajinagar (formerly Aurangabad), Maharashtra. We have relied on third-parties’ quotations in estimating the total cost of our capital expenditure, and no bank, financial institution or other independent agency has appraised this project," Ather said.
Backed by the world's largest two-wheeler manufacturer, Hero MotoCorp, Ather now joined the IPO league with recently-listed Ola Electric. At present, Ola Electric holds the largest market share in the electric two-wheeler segment in India and has gone public with an IPO in August 2024.