SUMMARY
- Ather Energy is set to submit its DRHP to SEBI in the next week to raise Rs 4,500 crore through its IPO.
- The EV manufacturer is anticipated to seek a valuation of $2.5 billion.
- The company secured $71 million in a new funding round in August.
EV two-wheeler manufacturer Ather Energy is set to submit its Draft Red Herring Prospectus (DRHP) to the Securities Exchange Board of India (SEBI) in the next week, to raise a total of Rs 4,500 crore through its Initial Public Offering (IPO) in a combination of a fresh issue and an offer for sale (OFS). This filing marks a month following the successful listing of its larger competitor, Ola Electric, on the stock exchanges.
Sources suggest that Ather Energy will seek a valuation of approximately $2.5 billion, a figure that has more than doubled from its valuation at the time of its last fundraising. In August, the company secured $71 million in a new funding round, led by its existing investor, the National Investment and Infrastructure Fund (NIIF), which took its valuation to $1.3 billion, positioning it as a unicorn startup.
Since the end of 2023, Ather Energy has initiated multiple rounds of fundraising activities. In May 2024, the company raised Rs 286 crore ($34 million) through a blend of debt and equity, through venture debt and co-founder investments. The Economic Times reported the developments first on Ather Energy’s Rs 4,500 crore IPO.
Stride Ventures, a venture debt firm, has invested close to Rs 200 crore via debentures, while co-founders Tarun Sanjay Mehta and Swapnil Jain contributed Rs 43.28 crore each through Series F preference shares. In September 2023, Hero MotoCorp, Ather Energy’s existing shareholder, announced the board’s approval for a $550 crore investment into the company.
Ather Energy’s primary competitor, Ola Electric went for its IPO in August of this year raising Rs 6,146 crore. Following its market debut, the company experienced a surge in its share price by 20%, placing it at a valuation of approximately $4.8 billion.
In terms of consolidated revenue, Ather Energy reported a figure of Rs 1,753 crore in FY24, which represents a 1.7% YoY decrease from the previous year. As of August, Ather Energy maintains a market share of nearly 12% and witnessed a month-on-month increase of 51% in the sales of electric two-wheelers, reaching a total of 10,829 units. Ola Electric continues to lead the market with a share exceeding 40%, followed by TVS Motors at 30%.
