Hey Wealthgainers, Today we are talking about Ather Energy IPO, Ather Energy, an innovative Indian electric two-wheeler manufacturer, headquartered in Bangalore, is all set to revolutionize the electric vehicle market with its upcoming Ather Energy IPO. The company was founded by IIT Madras alumni, Tarun Mehta and Swapnil Jain, in 2013 and has quickly risen to become one of the top three electric vehicle (EV) manufacturers in India. Ather is known for its robust range of electric scooters like the Ather 450X, Ather 450S, and Ather Rizta.
Ather Energy has filed a draft red herring prospectus (DRHP) with SEBI for its Initial Public Offering (IPO). Draft of Ather Energy IPO DRHP comes just after the successful listing of Ola Electric on August 9, 2024.
Key Details about Ather Energy:
| Detail | Information |
| Industry | Automotive, Electric Vehicles |
| Founded | 2013 |
| Headquarters | Bangalore, Karnataka, India |
| Founders | Tarun Mehta, Swapnil Jain |
| Products | Ather 450X, Ather 450S, Ather Rizta, Ather 450 Apex |
| Production Facilities | Whitefield, Bangalore & Hosur, Tamil Nadu |
| Annual Production Output | 51,749 scooters (2022) |
| Revenue (FY24) | ₹1,754 crore (US$210 million) |
| Net Loss (FY24) | ₹1,059 crore (US$130 million) |
| Ownership | Hero MotoCorp (37.2%), GIC (15.04%), Tarun Mehta (6.63%), Swapnil Jain (6.63%) |
| Website | atherenergy.com |
Ather Energy IPO Highlights:
The much-anticipated Ather Energy IPO 2024 is expected to hit the markets soon, aiming to raise ₹3,100 crore. This IPO marks a significant milestone in Ather’s journey, following the successful listings of Ola Electric and other competitors.
| Ather Energy IPO Details | Information Related To IPO |
| Ather Energy IPO Size | ₹3,100 crore (Fresh Issue) |
| Price Band | Not Declared |
| New Share Sale | Worth $370 million |
| Offer for Sale (OFS) | Up to 22 million shares from existing investors |
| Promoters Selling Shares | Tarun Mehta and Swapnil Jain (10 lakh shares) |
| Corporate Investors Selling Shares | Caladium Investment, NIIF II, 3State Ventures, IITM Incubation Cell |
| Valuation | $2.5 billion |
| Ather Energy IPO Date (Expected Launch) | By Diwali 2025 OR Early 2025 |
| Book Running Lead Managers | Axis Capital, JM Financial |
| Ather Energy IPO Shareholder Quota | Not Declared |
| Registrar | Link Intime India |
| Ather Energy IPO GMP | No Data(At Present Time) |
Read More – ONGC Green Energy IPO: Is It A Golden Opportunity for Investors?
Fund Utilization:
- ₹927 crore for establishing an EV factory in Maharashtra.
- ₹750 crore for Research and Development (R&D).
- ₹378 crore for debt repayment.
- ₹300 crore for marketing and branding initiatives.
Financial Snapshot (FY24):
| Parameter | Value |
| Revenue | ₹1,753.8 crore |
| Net Loss | ₹1,059.7 crore |
| Net Worth | ₹545.9 crore |
| Market Share | 12% (in electric two-wheelers) |
Innovative Products Of Ather Energy:
Ather’s product range boasts cutting-edge technology and design, setting them apart in the electric scooter market. Some of its flagship models include:
1. Ather 450X:
Equipped with a 7” touchscreen, 4G SIM, Wi-Fi, and Bluetooth connectivity, it also offers features like over-the-air (OTA) updates and smart accessories.
2. Ather Rizta:
Designed for both urban commuters and long-distance riders, this model boasts top-tier performance and sleek design.
3. Ather 450S & 450 Apex:
Both scooters focus on performance, advanced features, and a long battery life.
Expansion and Infrastructure of Ather Energy:
Ather has expanded its reach to over 96 cities, offering Ather Grid, its EV charging network with over 1,000 fast-charging points across India. It aims to make EV adoption seamless by setting up both public and home charging points.
| Infrastructure | Details |
| Manufacturing Capacity | 110,000 scooters annually in Hosur facility |
| Ather Grid Charging Points | 1,000+ across 80+ cities (as of May 2023) |
| Experience Centers | Around 140 centers in 96 cities |
Financial Growth and Investment History Of Ather Energy:
Ather Energy’s growth has been backed by strong financial support, with prominent investors like Hero MotoCorp and Sachin Bansal. Below is a snapshot of their major funding rounds:
| Year | Funding Round | Key Investors |
| 2014 | ₹4.5 million (Seed) | IIT Madras, Flipkart Founders |
| 2016 | ₹180 crore (Series B) | Hero MotoCorp |
| 2019 | ₹51 million (Series C) | Sachin Bansal, Hero MotoCorp |
| 2020 | ₹260 crore (Series D) | Sachin Bansal, Hero MotoCorp |
Ather Energy’s Journey:
- 2013: Ather Energy was founded by Tarun Mehta and Swapnil Jain.
- 2016: Introduce its first scooter, the S340.
- 2021: Began operations at its Hosur manufacturing facility.
- 2024: Filed for a ₹3,100 crore Ather Energy IPO, preparing for public listing.
Risks:
- Ather has reported losses since inception and continues to experience negative cash flow.
- No guarantee of profitability in the near future.
Conclusion:
As Ather Energy gears up for its IPO, the company’s trajectory signals rapid growth and leadership in the Indian electric two-wheeler market. With innovative products, strong backing, and expanding infrastructure, the Ather Energy IPO is expected to attract both retail and institutional investors looking to invest in India’s booming EV sector.