Electric Two-Wheeler Ather Energy Files IPO Papers with Sebi; Eyes Rs 3,100-Crore via Fresh Issue

Electric two-wheeler maker Ather Energy on Monday filed preliminary papers with capital markets regulator Sebi to raise funds through an Initial Public Offering (IPO).

The proposed IPO is a combination of a fresh issue of equity shares worth Rs 3,100 crore and an Offer For Sale (OFS) of 2.2 crore equity shares by promoters and investors shareholders, according to the Draft Red Herring Prospectus (DRHP).

Those selling shares in the OFS are -- Caladium Investment Pte Ltd, National Investment and Infrastructure Fund II, 3State Ventures Pte Ltd, IITM Incubation Cell and IITMS Rural Technology and Business Incubator among others.

Proceeds from the fresh issue will be used for capital expenditure to establish an electric two-wheeler factory in Maharashtra, investment in research and development, marketing initiatives, repayment of loan and for general corporate purposes.

This will be the second electric two-wheeler company looking to go public after Ola Electric Mobility floated its Rs 6,145-crore IPO in August. This was also the first issue by an automaker in the country in more than 20 years.

Ola Electric's IPO had a fresh issue of up to Rs 5,500 crore and an OFS of up to 8,49,41,997 equity shares.

Ather Energy is a pure-play EV company that designs all its products ground up in India. Since its inception in 2013, the company has focused on product and technology development in India in order to build an E2W ecosystem.

At present, the electric two-wheeler maker's portfolio consists of two product lines -- the Ather 450 and the Ather Rizta -- comprising a total of seven variants. Its E2Ws are complemented by a product ecosystem, which involves charging infrastructure, accessories and the Atherstack.

Axis Capital, HSBC Securities and Capital Markets (India) Pvt Ltd, JM Financial, and Nomura Financial Advisory Securities (India) Pvt Ltd are the book-running lead managers to the issue.