Upcoming IPO: Electric 2-wheeler Company Ather Energy Gets SEBI Nod For Public Issue; Details Here

Ather Energy, the Bengaluru-based electric two-wheeler manufacturer, has taken a step towards its stock market debut. The company has received final approval from the Securities and Exchange Board of India (SEBI) to float its Initial Public Offering (IPO).

The approval came in the form of an observation letter from SEBI on December 23, marking a green signal for Ather's public offering. In SEBI's terminology, the issuance of an observation letter implies that the company can proceed with its IPO.

Ather Energy IPO Details

According to Ather Energy's Draft Red Herring Prospectus (DRHP) filed in September 2024, the IPO will consist of fresh issue of equity shares worth Rs 3,100 crore, Offer for Sale (OFS) of 2.2 crore equity shares by existing shareholders, including promoters and investors.

Prominent investors such as Tiger Global, Caladium Investments, National Investment and Infrastructure Fund (NIIF), and Binny Bansal's 3 State Ventures are set to offload their stakes through the OFS. Ather Energy's co-founders, Tarun Mehta and Swapnil Jain, will also participate in the sale.

However, Hero MotoCorp, Ather's largest shareholder with a 37.2% stake, has opted out of the OFS.

Additionally, Ather Energy plans to raise Rs 620 crore through a pre-IPO placement. If this placement materializes, the amount will be deducted from the fresh issue size, as outlined in the DRHP.

EV IPOs

Ather Energy's IPO will position it as the second electric vehicle (EV) manufacturer in India to list on the stock exchanges, following Ola Electric Mobility's market debut in August.

Expanding Footprint

Ather Energy has been a key player in India's EV revolution, known for its innovative electric scooters such as the Ather 450X. The company has focused on creating a robust EV ecosystem, including charging infrastructure, to enhance customer convenience and accelerate EV adoption.

The proceeds from the fresh issue will primarily be used for business expansion, product development, and strengthening Ather's operational infrastructure.

Alongside Ather Energy, SEBI has also approved the IPO proposals of five other companies. List of approved IPOs include, Ivalue Infosolutions, Oswal Pumps, Fabtech Technologies, Quality Power Electrical Equipments, and Schloss Bangalore.