Ather Energy Files Draft Red Herring Prospectus for Rs 3,100 Crore IPO

Bengaluru-based electric two-wheeler firm Ather Energy has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO), aiming to raise up to Rs 3,100 crore.

This marks Ather’s intention to become the second two-wheeler electric vehicle (EV) maker to list on the stock exchange, following Ola Electric’s public debut last month. The fresh issue and offer for sale (OFS) will see Ather raise funds by issuing equity shares, with GIC Ventures, Tiger Global, 3 States Ventures, and co-founders Tarun Mehta and Swapnil Jain participating in the OFS.

Key Highlights:

• Ather plans to raise Rs 3,100 crore through a fresh issue of equity shares and an OFS of up to 2.2 crore equity shares.
• GIC Ventures through its subsidiary Caladium Investment will divest 47.8% of the total OFS, while Tiger Global and 3 States Ventures will offload 18.1% and 2.18% of the OFS, respectively.
• Hero MotoCorp is the largest external shareholder with a 37.2% stake, followed by GIC (Caladium Investment) and NIIF with 15.04% and 10.29% stakes, respectively.
• The proceeds from the fresh issue of shares will be used for capital expenditure, repayment of borrowing, research and development, and marketing expenses.
• Ather recently turned unicorn after $71 million in funding from existing investor National Investment and Infrastructure Fund.
• The company reported Rs 339 crore in revenue in Q1 FY25 with a net loss of Rs 183 crore in the same period.