Market Performance
Ather Energy, an electric vehicle manufacturer, is preparing to launch its Initial Public Offering (IPO) in the upcoming days. The company has filed its draft red herring prospectus (RHP) with the Securities and Exchange Board of India (SEBI) to raise approximately Rs 2,626 crore through a fresh issue of shares. Ather Energy aims to become the second Indian electric vehicle maker to go public, following Ola Electric’s IPO in the previous year.
Main News
Ather Energy’s IPO is set to launch between April 28 and April 30, 2025. The company plans to raise Rs 2,626 crore through a fresh issue of shares, which will contribute to its growth and expansion. In the lead-up to the IPO, Ather Energy has opted for a more conservative valuation, with a pre-money valuation targeted between Rs 9,900 crore and Rs 10,000 crore. After the IPO, the company expects its post-money valuation to exceed Rs 12,000 crore.
This valuation represents a decrease from the previously filed figure of Rs 14,000 crore, signaling the company’s more cautious stance in the face of current market conditions.
Company Details
Ather Energy is poised to become the second pure-play Indian electric vehicle manufacturer to enter the stock market. Along with the fresh issue of shares, the IPO will include an offer for sale (OFS) component, with 11,051,746 equity shares being offered by the promoter group and existing investors.
Key stakeholders, such as Ather Energy’s founders, Tarun Mehta and Swapnil Jain, along with investors like National Investment and Infrastructure Fund Limited (NIIF) and Tiger Global Management’s Internet Fund III, are set to offload part of their stakes in this IPO. Hero MotoCorp, which holds a significant 37% stake in Ather, has chosen not to participate in the offer for sale.
Financial Summary
While Ather Energy has yet to disclose detailed financial information in the article, the IPO is a critical step in raising capital for its future expansion plans. The company is taking a conservative approach to its valuation amidst the evolving market dynamics.
Conclusion
Ather Energy is moving forward with its IPO to raise funds, marking a significant step in its journey as an electric vehicle manufacturer. With a revised, more cautious valuation in place, the company is setting the stage for its public debut between April 28 and April 30, 2025. This move signals confidence in the growing demand for electric vehicles in India while also reflecting a prudent approach in a volatile market.
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