Bengaluru-based electric two-wheeler startup Ather Energy has recently met with several investment banks to discuss proposals for an initial public offering (IPO) in India. According to sources privy to the talks, the company is looking to raise around $400 million through the public listing, which could value Ather at about $2 billion.
The electric vehicle manufacturer, which currently offers models like the Ather 450X e-scooter, is said to be targeting an IPO as early as this year to fund its rapid expansion plans across the country. However, sources indicate the discussions are still in early stages and no final decisions on the potential listing have been made yet.
Backed by Hero MotoCorp, Ather has seen surging growth and demand on increased EV adoption. An IPO to access public markets could provide fresh capital to invest in manufacturing facilities, new products, charging infrastructure and retail outlets to cement its position.
IPO Launch Timeline, Valuation Could Change
While Ather is keen on launching its IPO as soon as this year to make the most of attractive market conditions, sources reveal the timelines and targeted size/valuation numbers could change as the proposals are still fluid.
Before firming up any concrete offering plans, the EV firm may assess factors like market sentiment, competitive landscape and its own financials during the course of the year.
It may also explore other private funding options before deciding whether to go ahead with an 2023 IPO or delay it to a more opportune time later on. But the discussions indicate the promising startup does have public listing on its mind to turbocharge growth.
