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.
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).
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’s 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.
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.
