Ather Energy Re-Files for DRHP With SEBI to Float IPO

Electric two-wheeler manufacturer Ather Energy has re-filed for its initial public offering (IPO), which was initially scheduled for earlier this year. The company received approval for its IPO plans from the market regulator in the last week of December 2024. Now, Ather is hopeful that market conditions will improve by May, with the company targeting a listing by the end of March.

Sale of Stake by Key Personnel

Aether Energy IPO will see Ather’s founders, Tarun Mehta and Swapnil Jain, as well as key investors like the National Investment and Infrastructure Fund Limited (NIIF) and Tiger Global Management’s Internet Fund III, selling a portion of their stakes. However, Hero MotoCorp, which holds more than 37% of Ather, will not participate in the share sale.

Aether Energy: A Unicorn

In August 2024, Ather raised ₹600 crores in its most recent fundraising round. During this round, Flipkart founder Sachin Bansal sold his stake in the company, part of which was purchased by Zerodha founder Nikhil Kamath in a personal capacity. Following this funding round, Ather’s valuation surpassed ₹10,000 crores, granting the company Unicorn status.

Aether Energy Sales Performance

Despite a slowdown in demand within India’s electric two-wheeler market, Ather Energy has managed to grow its sales by 20%. In February, electric vehicle (EV) two-wheeler sales dropped by 8% year-on-year, according to the Federation of Automobile Dealers Associations (FADA). Nonetheless, Ather’s growth outpaced the market, though its competitor Ola Electric recorded a higher growth rate of 52% in the same period.

For FY24, Ather Energy reported revenues of ₹1,753 crores.

Ather’s IPO would make it the second pure-play Indian electric vehicle manufacturer to go public, following Ola Electric’s IPO last year. Ola’s listing marked a significant milestone for the sector, though the company’s stock performance has since struggled.

Conclusion

As Ather Energy prepares for its public offering, it will be interesting to see how it fares in a fluctuating market and whether it can replicate the success of its electric vehicle peers in India.

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