Ather Energy's IPO Plans: Key Highlights

• Ather Energy, the electric scooter manufacturer, is set to file an updated draft red herring prospectus for its Initial Public Offering (IPO).
• The IPO is expected to launch in the first half of April 2025.
• The company, backed by Hero MotoCorp, aims to raise ₹3,700-4,000 crore through the public issue.

Valuation and Market Conditions

• Ather has reportedly reduced its valuation to $1.6 billion, down from its previous $2 billion.
• The reduction is due to weakening conditions in the secondary market.

IPO Structure

• The IPO will include:
  • Fresh issue of ₹3,100 crore
  • Offer for sale of up to ₹900 crore by founders Tarun Mehta and Swapnil Jain, along with existing investors.
• Notable investors participating in the offer include:
  • Tiger Global Management
  • National Investment and Infrastructure Fund III
  • 3State Ventures Internet Fund III
  • IITM (Indian Institute of Technology Madras)

Book Running Lead Managers

• Axis Capital
• HSBC Securities
• JM Financial
• Nomura

Fund Utilization

• ₹927 crore – Capital expenditure
• ₹378 crore – Debt repayment
• ₹750 crore – Research and development
• ₹300 crore – Marketing initiatives

Recent Business Performance

• In 2024, Ather raised ₹600 crore in funding from the National Investment and Infrastructure Fund (NIIF) at a valuation of $1.3 billion.
• Over 60,000 two-wheelers were sold between October and December 2024, driven by the success of the Rizta scooter model.

• Ather Energy’s IPO marks a significant milestone in India's electric vehicle (EV) sector.
• Despite market challenges, the company remains focused on expansion, research, and innovation.
• Investors and industry stakeholders will closely watch the IPO's performance in the coming months.