Ather Energy, a prominent electric two-wheeler manufacturer, has submitted its IPO proposal to SEBI, aiming to raise ₹3,100 crore through a fresh issue. The IPO includes an Offer For Sale (OFS) from promoters and investors. The funds will be allocated toward expanding manufacturing capacity, research and development, and general corporate needs. This marks the second public listing from an electric vehicle manufacturer in India, following Ola Electric's IPO. Ather’s growth, since its founding in 2013, reflects its commitment to innovation and building a robust EV ecosystem in India.

IPO Structure: Fresh Issue and Offer For Sale

Ather Energy’s IPO targets ₹3,100 crore in fresh equity: The company is set to raise ₹3,100 crore through a fresh issue of equity shares. Additionally, the IPO includes an OFS of 2.2 crore shares, allowing promoters and existing investors to offload part of their holdings. Prominent investors participating in the OFS include Caladium Investment Pte Ltd, National Investment and Infrastructure Fund II, and 3State Ventures Pte Ltd. This dual structure is designed to both raise capital and provide liquidity to early stakeholders.

Utilization of Proceeds

Proceeds earmarked for strategic expansion and R&D: A significant portion of the funds raised through the fresh issue will be utilized for capital expenditure, specifically to set up a state-of-the-art electric two-wheeler factory in Maharashtra. Ather Energy will also channel investments into *research and development* to strengthen its technological capabilities. Additionally, funds will be used for marketing initiatives, repayment of existing loans, and other general corporate purposes.

India’s Electric Two-Wheeler Industry

Ather follows Ola Electric’s IPO in the EV space: Ather Energy’s IPO arrives shortly after Ola Electric Mobility’s public listing, which raised ₹6,145 crore in August. Ola’s IPO included a fresh issue of ₹5,500 crore and an OFS of over 8.49 crore shares. Ather Energy’s public listing signals growing investor confidence in India’s rapidly expanding electric vehicle (EV) sector, with both companies striving to meet the surging demand for electric two-wheelers.

Ather Energy’s Product Portfolio

Ather’s product ecosystem is centered on innovation: Ather Energy designs and manufactures all its electric two-wheelers in India, positioning itself as a leading player in the country’s EV market. Its current product lineup includes two key models, the *Ather 450* and the Ather Rizta, offering a total of seven variants. This portfolio is bolstered by a comprehensive ecosystem, featuring charging infrastructure, accessories, and *Atherstack*, a proprietary software platform. The company's strong focus on technology and design has been integral to its market differentiation.

Lead Managers to the IPO

Top financial institutions backing the IPO: Ather Energy’s IPO is being managed by leading investment banks, including Axis Capital, HSBC Securities and Capital Markets (India) Pvt Ltd, JM Financial, and Nomura Financial Advisory Securities (India) Pvt Ltd. These institutions are acting as the book-running lead managers, ensuring smooth execution and offering confidence to potential investors in the highly competitive EV sector.