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Ather Energy, a prominent player in the Indian electric two-wheeler market, has taken a significant step towards its public listing by filing a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). This move signifies the company's ambition to access capital markets and fuel its growth trajectory. The proposed Initial Public Offering (IPO) aims to raise a substantial ₹3,100 crore, representing a blend of fresh equity issuance and an Offer For Sale (OFS) by existing shareholders. The fresh issue will contribute ₹3,100 crore to the company's coffers, while the OFS will see a total of 2.2 crore equity shares being offered by promoters and investors. This strategic move allows existing stakeholders to partially exit their investments while providing Ather Energy with a platform to raise funds for its ambitious expansion plans.
The DRHP reveals a diverse group of investors who will participate in the OFS. These include Caladium Investment Pte Ltd, National Investment and Infrastructure Fund II, 3State Ventures Pte Ltd, IITM Incubation Cell, and IITMS Rural Technology and Business Incubator. Notably, Hero MotoCorp, the global leader in two-wheeler manufacturing, currently holds a 37.2% stake in Ather Energy but has opted not to participate in the share sale. The proceeds generated from the fresh issue will be strategically deployed by Ather Energy to fuel its growth initiatives. These funds are earmarked for capital expenditure aimed at establishing a new electric two-wheeler factory in Maharashtra, bolstering its research and development capabilities, driving marketing campaigns, repaying existing debt, and fulfilling general corporate requirements.
Ather Energy's foray into the public markets comes on the heels of Ola Electric Mobility's successful IPO in August 2022, which raised a substantial ₹6,145 crore. Ola Electric's IPO, consisting of a fresh issue and an OFS, marked a pivotal moment for the Indian electric vehicle sector. The success of Ola Electric's IPO has set a strong precedent for Ather Energy, highlighting the market's appetite for investments in companies leading the electric mobility revolution. As Ather Energy embarks on its IPO journey, the company's performance and the investor response will be closely watched. The success of the IPO hinges on factors such as the company's financial performance, growth prospects, and its ability to capitalize on the burgeoning demand for electric vehicles in India. The upcoming IPO is poised to be a significant milestone for Ather Energy, positioning it for further expansion and strengthening its position in the dynamic electric two-wheeler market.
Source: Ather Energy files DRHP with Sebi for IPO; seeks to raise ₹3,100 crore via fresh issue