Ather Energy files for IPO

Indian electric two-wheeler maker Ather Energy has filed for an initial public offering (IPO) worth INR 45 billion (USD 536.2 million) at a valuation of USD 2.5 billion. The company is seeking to tap into the red-hot stock market, just weeks after its larger rival, Ola Electric, went public.

Backed by Hero MotoCorp, Ather is India's fourth-largest e-scooter maker by market share. The company's decision to list comes amidst a booming stock market, where 200 companies have raised over USD 7 billion through IPOs this year, according to LSEG data.

Ather is offering new shares worth INR 31 billion in the IPO. Additionally, existing investors and some top shareholders, including co-founder and CEO Tarun Sanjay Mehta, are selling shares worth 14 billion rupees. However, top shareholder Hero will not be selling shares in the IPO.

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Ather has been one of the pioneers in the Indian e-scooter market, launching its products in 2018. However, it has faced stiff competition from larger rivals like Ola Electric and TVS Motor, which have aggressively expanded their presence and offered discounts to drive sales.

Ather plans to use the proceeds from the IPO to establish an electric two-wheeler factory in Maharashtra state and for marketing purposes. Ola Electric, which recently went public, has seen its stock price surge by more than double from its IPO price.

The adoption of electric vehicles in India is still relatively low, but it is on the rise as the government promotes clean energy initiatives. Ather's financial performance has been challenging, with its losses widening for at least the second consecutive year in fiscal 2024.