Ather Energy, the Bengaluru-based electric scooter manufacturer, is gearing up for an Initial Public Offering (IPO), targeting a valuation of $2-2.25 billion (₹16,800-19,000 crore). The company, which is backed by Hero MotoCorp, plans to raise ₹3,500-4,000 crore through the IPO, which will include both a fresh issue and an offer for sale by existing shareholders. A portion of the funds raised will be allocated for capacity expansion.
IPO Follows Ola Electric’s Success
Ather’s IPO plans come after the successful listing of Ola Electric Mobility, which raised ₹6,146 crore at a valuation of $4 billion. Since its August 9 listing, Ola Electric’s stock has appreciated, pushing its valuation to $6 billion. Ather’s entry into the stock market reflects the growing confidence in India’s electric vehicle (EV) sector, as more companies leverage public offerings to fund expansion and innovation.
Fourth-Largest Electric Two-Wheeler Maker in India
Ather Energy, the maker of the 450X and Rizta electric scooters, ranks as the fourth-largest electric two-wheeler maker in India by sales volume, trailing behind Ola Electric, TVS Motor, and Bajaj Auto. In August 2024, Ather sold 10,830 electric scooters, a 51% increase from the same period last year, capturing a 12.2% market share, according to the Vahan vehicle registration database. The company’s total sales for the first five months of FY25 stand at 37,508 units, with a 9% overall market share.
Investment Banks and Market Expectations
Ather Energy has appointed leading investment banks, including HSBC, JPMorgan, Axis Capital, JM Financial, and Nomura, to manage the IPO. While the company is yet to officially comment, industry insiders believe the IPO could further solidify Ather’s position in the competitive electric two-wheeler market. Investors will be keen to see how Ather’s growth trajectory compares with market leaders like Ola Electric, which currently holds a 42.4% market share.
With its sights set on growth, Ather Energy’s upcoming IPO could play a pivotal role in expanding its production capacity and solidifying its standing in India’s booming electric vehicle market.
