Ather Energy Files IPO, Aims To Raise ₹3,100 Crores

Bengaluru-based electric two-wheeler manufacturer Ather Energy has announced its plans to go public. The maker of the Rizta and 450 range of scooters has filed the paperwork for an initial public offering (IPO) that is slated to raise ₹3,100 crore (approximately $372 million) in fresh capital. We have got in touch with Ather Energy for an official quote on the same, but at the time of compiling this article we didn't have any communication. Stay tuned to this space, for we shall update the exact amount that Ather Energy raised in this IPO.

The IPO will consist of two parts: the issuance of new shares and an offer for sale (OFS) allowing some current investors to partially sell their stakes. Notable shareholders participating in the OFS include the company's founders, Tarun Mehta and Swapnil Jain, as well as prominent investors such as Tiger Global and Singapore's GIC. Interestingly, Hero MotoCorp, Ather's largest shareholder with a 37 per cent stake, has chosen not to sell any shares through this offering.

(Also Read: Ather Energy Plans Third Plant in Aurangabad, Maharashtra)

Financially, Ather Energy reported a revenue of ₹1,754 crore in the fiscal year 2024, a slight decrease from the previous year. However, the company's net loss expanded to ₹1,060 crore, up from ₹864 crore in FY23. Despite these challenges, Ather has shown strong growth in sales, with a 51 per cent year-on-year increase in e-scooter sales last month, capturing a 12.2 per cent market share.

The company's decision to go public reflects its ambition to scale up operations and strengthen its market position in the evolving electric vehicle landscape. Ather Energy plans to use the funds raised from the IPO to fuel its expansion plans. A significant portion will be allocated to establishing a new electric two-wheeler factory in Maharashtra, capable of producing over one million vehicles annually. The company also intends to invest in research and development to enhance its technological capabilities and maintain its competitive edge in the market.