The IPO is part of a vibrant trend in India’s stock market, which has seen around 200 companies raise over $7 billion through initial public offerings (IPOs) this year, according to LSEG data.
Indian electric scooter manufacturer Ather Energy has filed for a ₹4,500 crore ($536.2 million) initial public offering (IPO), targeting a valuation of $2.5 billion. This move comes in the wake of Ola Electric’s recent market debut, as the Indian stock market continues to surge with investment activity.
According to a source familiar with the matter, Ather plans to issue new shares worth ₹3,100 crore. Existing investors and major shareholders, including co-founder and CEO Tarun Sanjay Mehta, will sell shares valued at ₹1,400 crore. The source requested anonymity due to the confidential nature of the information. Ather did not immediately respond to requests for comment from Reuters.
Ather, which produces electric scooters, competes with Ola Electric, which recently went public. Hero MotoCorp, Ather’s largest shareholder with a 37.2% stake, will not be participating in the IPO.
This IPO is part of a larger trend in India’s dynamic stock market, which has seen approximately 200 companies raise over $7 billion through IPOs this year, according to LSEG data.
Ola Electric, which went public on August 9 with a $734 million IPO, saw its stock more than double from its initial price of ₹76 before experiencing a slight dip. The stock is currently trading about 5% lower at ₹103.99.
Despite the growing interest in electric vehicles, adoption in India remains relatively low but is increasing, driven by government initiatives promoting clean energy.
Ather plans to use the IPO funds to build a new electric two-wheeler manufacturing facility in Maharashtra and to support research and development. The company’s losses widened for the second consecutive year in fiscal 2024, reaching ₹1,060 crore, up from ₹864 crore the previous year.
Axis Capital, JM Financial, Nomura, and HSBC are serving as the book-running lead managers for the IPO.
