Ather Energy, the electric two-wheeler manufacturer founded by Tarun Mehta and Swapnil Jain, has filed its Draft Red Herring Prospectus (DRHP) with SEBI to launch an initial public offering (IPO) worth INR 3,100 crore. The company, known for its innovative electric scooters, aims to raise funds to accelerate its growth and expansion.

The IPO will consist of a fresh issue of equity shares worth INR 3,100 crore and an offer for sale (OFS) of 2,20,00,766 equity shares by existing shareholders. Key promoters Mehta and Jain will each sell one million shares, while other major shareholders, including Caladium Investment Pte Ltd, National Investment Infrastructure Fund II, and IITM Incubation Cell, will also participate in the OFS.

Ather Energy plans to use the proceeds from the IPO strategically. INR 927.2 crore will be invested in setting up a new electric two-wheeler (E2W) manufacturing facility in Maharashtra, known as Factory 3.0, which will boost production capacity to 1.42 million E2Ws. INR 750 crore will be allocated to research and development to enhance technological capabilities, and INR 378.2 crore will be used to repay existing debts. Additionally, INR 300 crore will support marketing efforts to broaden market presence, with the remainder allocated for general corporate purposes.

The company may also conduct a pre-IPO placement of up to INR 620 crore, potentially reducing the size of the fresh issue. The IPO will see Ather Energy’s shares listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with Axis Capital, HSBC Securities, JM Financial, and Nomura Financial Advisory serving as the bookrunning lead managers.

Ather Energy manufactures its electric scooters and battery packs at its facility in Hosur, Tamil Nadu, with an installed annual capacity of 420,000 E2Ws and 379,800 battery packs as of March 2024. The company operates the Ather Grid, a fast-charging network with 1,973 chargers across 233 cities, and sells home charging solutions alongside its scooters. With revenues of INR 1,753.8 crore in Fiscal 2024, Ather Energy is well-positioned for future growth supported by its experienced management team and commitment to sustainable mobility.