EV-maker Ather Energy files draft papers with Sebi for Rs 4,500 crore IPO: Report

Electric two-wheeler-maker Ather Energy filed its draft red herring prospectus (DRHP) for a Rs 4,500 crore initial public offering (IPO) with market regulator Sebi, news agency Reuters reported citing sources. Ather is reportedly selling new shares worth Rs 3,100 crore in the IPO.

Existing investors and some top shareholders, including co-founder and CEO Tarun Sanjay Mehta, are selling shares worth Rs 1,400 crore in the float, according to the report. The company said it will utilise proceeds from the initial share sale to establish an electric two-wheeler factory in Maharashtra state along with research and development.

Ather has a manufacturing facility at Hosur, Tamil Nadu. It is also planning to set up another manufacturing plant in Maharashtra state (Chattrapati Sambhaji Nagar district).

As per the Reuters report, Aether's net loss widened for the second consecutive year in fiscal 2024 to Rs 1,060 crore from Rs 864 crore a year earlier. Axis Capital, JM Financial, Nomura and HSBC are book-running lead managers for the issue.

The EV firm makes electric scooters and competes with recently-listed Ola Electric Mobility Ltd. The country's largest two-wheeler giant Hero MotoCorp Ltd, Ather's top shareholder holding a 37.2 per cent stake, will not sell shares in the IPO.

IIT Madras alumni Tarun Mehta and Swapnil Jain founded Ather in 2013. Apart from Hero MotoCorp, other backers of Ather include Flipkart's co-founders Sachin Bansal and Binny Bansal.

Rival Ola Electric shares, which got listed on exchanges on August 9, more-than-doubled investor money from its IPO price of Rs 76 before trimming some gains. The stock today settled 4.61 per cent higher at Rs 114.70. At this price, Ola Electric has gained 50.92 per cent from its issue price.

Ola Electric's consolidated net loss widened to Rs 347 crore in the April-June quarter (Q1 FY25) from Rs 267 crore in the year-ago quarter.

(With inputs from Reuters)