Ather Energy Converts Preference Shares Into Equity Before IPO

Ather Energy Ltd, the electric two-wheeler manufacturer  has converted 1.73 crore compulsory convertible preference shares (CCPS) into 24.04 crore fully paid-up equity shares, as part of its preparation for an Initial Public Offering (IPO). The company’s board approved the conversion through a resolution passed on March 8, 2025, according to a filing with the Registrar of Companies.

IPO Filing and Regulatory Compliance

As per the Securities and Exchange Board of India (SEBI) Issue of Capital and Disclosure Requirements (ICDR) regulations, all CCPS must be converted into equity before a company can file its Red Herring Prospectus (RHP). Ather’s converted CCPS include multiple series issued over time, such as Series Seed (One to Four), Series A to G, and various E-class shares, among others. 

With this step completed, the company is moving toward finalizing its IPO process.

IPO Structure and Fund Utilisation

Ather’s IPO will consist of a fresh issue of equity shares worth ₹3,100 crore and an offer-for-sale (OFS) of 2.2 crore equity shares by promoters and existing investors. According to the company’s Draft Red Herring Prospectus (DRHP), the funds raised will be used for setting up an electric two-wheeler manufacturing facility in Maharashtra and for debt reduction. 

The public issue is expected to be launched in April 2025, as per news reports.

Second EV Two-Wheeler IPO in India

Ather’s listing follows Ola Electric Mobility’s ₹6,145 crore IPO in August 2024.. Ola Electric’s offering included a fresh issue of ₹5,500 crore and an OFS of 8.49 crore shares.

Conclusion

Apart from its IPO preparations, Ather has been expanding its research and development (R&D). As per the filing, the company is focused on production expansion and market growth as it moves toward its public listing.

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