Indian electric two wheeler-maker Ather Energy files for IPO, including Rs 3,100 crore fresh issue

The company announced in the draft red herring prospectus on Monday

Electric two-wheeler manufacturer Ather Energy has announced its plans to go public with an initial public offering (IPO), which will include a fresh issue of shares worth Rs 3,100 crore, according to a draft red herring prospectus filed on Monday. Ather's filing comes a month after larger rival Ola Electric's successful listing on the bourses.

The IPO includes an offer for sale of up to 2.2 crore shares by investors and promoters. Under the OFS, Tarun Sanjay Mehta and Swapnil Babanlal Jain will offload 1 million equity shares in the company. Caladium Investment Pte Ltd, National Investment and Infrastructure Fund II and 3State Ventures Pte. Ltd are among the corporate selling shareholders.

Ather Energy, supported by Indian bike-maker Hero MotoCorp, is known for its electric scooters and competes with the recently-listed Ola Electric. The IPO will involve a fresh issue of shares and will see investors and some top shareholders selling up to 22 million shares.

The funds raised from the IPO will be allocated to capital expenditures for establishing a new electric two-wheeler manufacturing facility in Maharashtra, India, and will also support ongoing research and development efforts.

Axis Capital and JM Financial have been appointed as the book-running lead managers for the offering while Link Intime India Pvt Ltd is the official registrar to the issue.

Moneycontrol reported last week that Ather Energy is planning to file its DRHP with SEBI to raise Rs 4,500 crore from its Initial Public Offering in a mix of a fresh issue and offer for sale (OFS).

The company plans to use the proceeds for capital expenditure to establish an electric two-wheeler factory in Maharashtra, and for research and development.

Ather Energy’s manufacturing facility is located at Hosur, Tamil Nadu. They are also planning to set up another manufacturing plant in Maharashtra state (Chattrapati Sambhaji Nagar district), which has a high E2W penetration and has a strong automotive supplier base, it said.

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