EV maker Ather Energy secures SEBI's final nod for IPO

Ather Energy gets SEBI nod for IPO

Electric two-wheeler maker Ather Energy received the final approval from markets regulator Securities Exchange Board of India (SEBI) on December 30 to launch its Initial Public Offering (IPO).

While the firm is yet to file its RHP documents, according to the company's Draft Red Herring Prospectus, the total IPO size may be around Rs 4,500 crore. If the IPO gets launched, Ather Energy will be the second company listing on the bourses after its rival Ola Electric Mobility which had a debut in August.

The electric two-wheeler manufacturer had filed draft papers on September 9 with the intention to raise funds for establishment of an E2W (electric two-wheeler) factory in Maharashtra, and debt reduction. The IPO will be a combination of fresh issue of equity shares worth Rs 3,100 crore, and an offer-for-sale of 2.2 crore equity shares by promoters and investors.

Sources close to Moneycontrol said that the firm is targeting a valuation of around $2.5 billion. The valuation has doubled since its last fundraise. In August of 2024, 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.

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.