Ather Energy, a leading name in India’s electric two-wheeler market, has received the go-ahead from the Securities and Exchange Board of India (SEBI) to move forward with its highly anticipated Initial Public Offering (IPO).
This marks a significant milestone for the company, positioning it to become the second major electric vehicle manufacturer to list on Indian stock exchanges, following in the footsteps of Ola Electric earlier this year.
Company Poised to Raise a Huge Amount
The company’s IPO is expected to raise around ₹4,500 crore, with ₹3,100 crore from the issuance of new equity shares and the remaining portion coming from the sale of 2.2 crore shares by existing stakeholders, including promoters and investors.
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Ather is targeting a valuation of approximately $2.5 billion, nearly double its worth from August, when it secured $71 million in a funding round led by the National Investment and Infrastructure Fund (NIIF).
Where Would the IPO Money be Invested?
Proceeds from the IPO will be used to establish a new electric vehicle manufacturing facility in Maharashtra, reduce the company’s debt, and fund further research, development, and marketing efforts.
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Despite a slight dip in revenue—around 1.7% year-on-year, with ₹1,753 crore in consolidated revenue for the 2024 financial year—Ather remains optimistic about India’s rapidly expanding electric vehicle market and its future growth prospects.
