After Ola, Ather Energy Also Prepares For An IPO

Ather has been planning to go public for a while now, with the plans set to be in motion to execute the offering very soon. Ather would become the second Indian electric two-wheeler start-up to go public, after Ola did the same a couple of months ago. With the IPO, the aim is to raise funds in the ₹3,500-4,000 crore region, thus giving it a valuation of $2-2.5 billion. It had recently earned itself ‘unicorn’ status after a fresh funding of almost ₹600 crore from National Investment and Infrastructure Fund (NIIF), making it one of the 106 Indian companies to earn the title.

With the IPO, the funding raised would be utilised to increase the production capacity. Ather had invested nearly ₹ 2,000 crores in a third plant in Aurangabad, Maharashtra, which should help matters in this regard.

The launch of the new family e-scooter, the Rizta, has been quite beneficial for Ather, who until then was only making the 450 series, e-scooters with pure sporty intentions. We also got a taste of the pure full potential of the 450 platform with the 450 Apex, an electric scooter that really has thrilling capabilities like no other in the market.

With these two new launches as well as the existing 450X and 450S, Ather managed to sell 10,830 units in August 2024, settling into the fourth spot in the overall EV sales. In fact, it continues to outsell Hero MotoCorp, who is one of Ather’s main investors.

However, September 2024 is the last month of the EMPS government subsidy scheme and electric two-wheeler manufacturers, like Ather, would be keen on cashing in on this period. With no subsidies likely in store for e-scooters and e-motorcycles in the upcoming FAME-III scheme, we can expect some heavy discounts from all. It will be interesting to note then how Ather shapes its IPO, as it will need some form of market stability to make it easy for investors to buy into the brand.