The IPO features a sale offer of up to 22 million shares from investors and promoters.
The domestic electric two-wheeler manufacturer Ather Energy has submitted its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to initiate its initial public offering (IPO). This IPO includes a fresh issue of shares valued at Rs 3,100 crore, according to the official documentation.
Additionally, the IPO features a sale offer of up to 22 million shares by both investors and promoters.
In terms of future plans, Ather Energy intends to allocate approximately Rs 927.2 crore of the net proceeds toward establishing a new electric two-wheeler factory in Maharashtra, India, and for further research and development activities.
The company elaborated that Rs 9,272 million from the net proceeds will be directed to fund the capital expenditure requirements for constructing Phase I of Factory 3.0 at Chhatrapati Sambhajinagar (formerly known as Aurangabad) in Maharashtra. The cost estimations for this capital expenditure have been based on third-party quotations and have not been appraised by any banks, financial institutions, or independent agencies.
Supported by Hero MotoCorp, the world’s largest two-wheeler manufacturer, Ather has entered the IPO fray alongside other recently-listed companies like Ola Electric. Currently, Ola Electric leads with the largest market share in India’s electric two-wheeler sector and launched its own IPO in August 2024.
