Electric two-wheeler maker Ather Energy is set to file its DRHP (Draft Red Herring Prospectus) with SEBI next week to raise Rs 4,500 crore from its Initial Public Offering in a mix of a fresh issue and offer for sale (OFS), according to sources. Ather's filing comes a month after larger rival Ola Electric's successful listing on the bourses.
The sources said that the firm is targeting a valuation of around $2.5 billion. The valuation has doubled since its last fundraise.
Last month, Ather Energy secured $71 million in a new funding round led by its existing investor, the National Investment and Infrastructure Fund (NIIF), which took the valuation to $1.3 billion, making it a unicorn startup.
The company has been raising multiple rounds of funding since the end of 2023.
In May this year, Ather raised Rs 286 crore ($34 million) through a mix of debt and equity, largely through venture debt and co-founders. The Economic Times reported the developments first on Ather's Rs 4,500 crore IPO.
Venture debt firm Stride Ventures has invested close to Rs 200 crore via debentures, while Ather's co-founders Tarun Sanjay Mehta and Swapnil Jain pumped in Rs 43.28 crore each via Series F preference shares.
In September last year, Hero MotoCorp, its existing shareholder had announced its board's approval to invest Rs 550 crore into Ather Energy.
Ather's close rival Ola Electric went for an IPO in August this year, raising Rs 6,146 crore. In the same month, its shares surged 20 percent on market debut and pinned the valuation of the startup at around $4.8 billion.
Ather Energy clocked a consolidated revenue of Rs 1,753 crore, which was 1.7 percent lower Year-on-Year (YoY) in the financial year 2024. As of August, Ather Energy holds a market share of nearly 12% and registered a month-on-month growth in EV two-wheeler sales of of 51% to 10,829 units were. Ola continues to dominate the market with a share of more than 40%, followed by TVS Motors at 30%.
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