Ather Energy, the two-wheeler EV manufacturer is one step closer to its IPO launch as the company has approved the conversion of its preference shares into equity shares. The company’s board of directors passed a resolution on March 08, 2025 approving the conversion of over 1.73 crore outstanding Compulsorily Convertible Preference Shares (CPPS) into 24.04 crore fully paid-up equity shares. The SEBI’s regulations demand that all the CCPs must be converted into equity shares ahead of RHP filing.
The Rs 4,000 crore initial public offering (IPO) of Ather Energy is expected in April 2025 and will include both; fresh issuance of equity shares as well as an offer for sale. The issue will have a retail quota of 10% and a shareholder’s quota for Hero MotoCorp shareholders.
The Hero MotoCorp-backed Ather Energy had filed its draft papers with the Securities and Exchange Board of India (SEBI) in September 2024 and had received the approval in December 2024. According to the draft red-herring prospectus available on the SEBI’s website, Ather Energy IPO will consist of a fresh issue of Rs 3,100 crore on a face value of Rs 1 as well as a offer for sale of up to 2.2 crore equity shares.
As per the information available in DRHP, the list of selling shareholders include the Promoters Tarun Sanjay Mehta and Swapnil Jain who will each offload 10 lakh shares. Corporate selling shareholders include Caladium Investment Pte Ltd, National Investment and Infrastructure Fund II, Internet Fund III Pte Ltd, 3State Ventures Pte Ltd, IITM Incubation Cell and IITMS Rural Technology and Business Incubator. Individual selling shareholders are Amit Bhatia and Karandeep Singh.
The company has appointed AXIS Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, JM Financial Limited and Nomura Financial Advisory and Securities (India) Private Limited as book running lead managers for its initial public offering. Link Intime India Private Limited will be the registrar to the offer.
The company expects to use the net proceeds from the issue for capital expenditure to be incurred for setting up for an E2W factory in Maharashtra, repayment/pre-payment of borrowings, investment in research and development, expenditure toward marketing initiatives and general corporate purposes.
Ather Energy will be the second two wheeler EV manufacturer after OLA to launch a public issue. OLA Electric’s Rs 6,154 crore IPO was launched in August 2024 and had a premium listing.
Founded by Tarun Mehta and Swapnil Jain in 2013 and backed by Hero MotoCorp, Ather Energy is the fourth-largest electric two-wheeler manufacturer in India. The company has manufacturing facilities in Bengaluru and Tamil Nadu and plans another in Maharashtra after the IPO. According to its official website, the company currently has experience centres across 189 cities in the country. The company has also set more than 2,700 charging stations across 230+ cities. The company sold a total of 1.25 lakh two wheelers in 2024, up from 1.04 lakh in 2023. The company has a 12% market share in electric two wheeler vehicle sales, behind BAJAJ, OLA Electric and TVS.
The company’s main revenue streams are sale of its two wheelers, and after-sale and subscription services. The Company reported a revenue of Rs 1,754 crore in FY24 from operations, a 1.5% decline from Rs 1,781 crore in FY23. However, in 2023, the company’s revenue was a 329% increase from 2022.
The company’s loss before tax was reported to be Rs 1,060 crore in FY24, Rs 865 crore in FY23 and Rs 344 crore in 2022.