Ather Energy gets SEBI nod for IPO

Hero MotoCorp-backed electric two-wheeler maker Ather Energy Ltd has received approval from the markets regulator Securities Exchange Board of India (SEBI) for its initial public offering (IPO).

The Bengaluru-based automaker’s public issue will be a combination of fresh issue of equity shares worth Rs 3,100 crore and an offer for sale (OFS) of 2.2 crore equity shares by promoters and investors.

Caladium Investments, National Investment and Infrastructure Fund II, Internet Fund III, 3State Ventures and cofounders Tarun Mehta and Swapnil Jain are among the investors who will offload their shares via OFS.

India’s largest two-wheeler maker Hero MotoCorp Ltd is the largest shareholder in Ather with a 37.2% stake. It is not selling any shares in the issue.
Ather plans to use Rs 3,100 crore net proceeds from fresh issue for capital expenditure of its upcoming facility in Aurangabad (Maharashtra), research and development, marketing activities and repayment of debt.

The company expects to start production at the Aurangabad facility, which will have an initial capacity of 5 lakh units per year, in a phased manner from May 2026. Currently, the company has one manufacturing facility in Hosur (Tamil Nadu) that has an installed capacity to produce 4.20 lakh units per year.

Autocar Professional had reported that Ather Energy is developing two new electric two-wheeler platforms in a bid to expand the addressable market. 

The automaker currently offers two electric scooter models – Ather 450 and Ather Rizta 229 with a total of seven variants on a single platform. It is now developing a motorcycle platform named "Zenith" and a new scooter platform named "EL."
During the financial year 2024, Ather Energy sold a total of 1.10 lakh electric two-wheelers, up from 92,093 units sold in the financial year 2023.

Axis Capital, HSBC Securities and Capital Markets (India), JM Financial, Nomura Financial Advisory and Securities (India) are booking running lead managers for the issue. Ather’s counterpart Ola Electric recently listed its shares on the stock exchanges and raised Rs 5,500 crore.