Ather Energy is preparing for initial public offering (IPO) with a target valuation of somewhere between $2 and $2.25 billion (Rs 16,800-19,000 crore). The electric scooter manufacturer is backed by Hero MotoCorp and sources reveal that it is expected to file draft papers by next week to raise around Rs 3,500-4,000 crore through the public issue. The primary plan is to expand production capacity. HSBC, JPMorgan, Axis Capital, JM Financial and Nomura are enlisted to manage the IPO process.<\/p>\n
Ather Energy has steadily grown its market presence. It is currently the fourth-largest electric scooter manufacturer in India by volume. Ola Electric, TVS Motor and Bajaj Auto are next to it. The startup sold about 10,830 e-scooters in August and this was marked as a 50% increase from the same period in 2023. However, it faced losses that widened by 22% to Rs 1,059 crore in FY24. Its revenue remained flat at Rs 1,789 crore. Hero MotoCorp is a significant shareholder in it and injected Rs 124 crore in June 2024 to acquire an additional 2.2% stake in the company. Ather entered the unicorn club in August following funding round of Rs 600 crore ($71 million) led by the National Investment and Infrastructure Fund (NIIF).<\/p>\n
IPO plans of the startup came soon after the successful listing of Ola Electric that raised nearly Rs 6,146 crore and was then at a $4 billion valuation. Ola\u2019s stock has appreciated since then and boosted valuation to $6 billion. Ola also recently secured certification for production-linked incentive (PLI) benefits for two additional vehicles.<\/p>\n
The upcoming IPO is said to be a significant event in the Indian electric vehicle sector. Ather Energy is positioning itself for long-term growth with the support from Hero MotoCorp and fresh capital from institutional investors.<\/p>\n","protected":false},"excerpt":{"rendered":"