December 31, 2024 | Bengaluru.
Bengaluru-Based EV Pioneer Gears Up for Stock Market Debut
Ather Energy, a leading electric two-wheeler manufacturer from Bengaluru, is set to go public after receiving the Securities and Exchange Board of India’s (SEBI) approval for its Initial Public Offering (IPO). The observation letter from SEBI, issued on December 23, 2024, marks a significant milestone in Ather’s journey, making it the second EV manufacturer in India to debut on the stock market, following Ola Electric Mobility.
Key Highlights of Ather Energy’s IPO
IPO Structure
- Fresh Issue of Equity Shares: Worth ₹3,100 crore.
- Offer for Sale (OFS): 2.2 crore shares from existing shareholders, including prominent investors like:
- Tiger Global.
- Caladium Investments.
- National Investment and Infrastructure Fund (NIIF).
- Binny Bansal’s 3 State Ventures.
- Hero MotoCorp, Ather’s largest shareholder with a 37.2% stake, will not participate in the OFS.
Pre-IPO Placement
- Plans to raise ₹620 crore through a pre-IPO placement. If successful, this amount will be deducted from the fresh issue size.
How the Funds Will Be Used
Proceeds from the IPO are earmarked for:
- Business Expansion: Strengthening Ather’s footprint in the Indian EV market.
- Product Development: Enhancing its innovative product lineup, including models like the Ather 450X.
- Operational Infrastructure: Building a robust EV ecosystem, including charging infrastructure to support growing adoption.
Why This Matters for the EV Industry
The IPO positions Ather Energy as a key player in India’s EV revolution. With its focus on innovation and infrastructure, Ather aims to accelerate the country’s transition to sustainable mobility. The company’s public listing will also highlight investor confidence in India’s growing EV sector.
