Ather Energy, the two-wheeler electric vehicles maker backed by Hero group, has officially transitioned from a private limited company to a public limited company., ahead of a potential IPO. This significant development was approved during the company’s annual general meeting (AGM) held last week. This move is the latest step by the EV maker towards an initial public offering (IPO) planned for the second half of the year.
Alongside its transition to a public company, Ather Energy has also increased its authorized share capital significantly. The company’s share capital has been raised from ₹93.6 lakh to ₹50 crore. This substantial increase will provide the company with the financial flexibility needed to support its growth and operational expansion. The company also plans to issue bonus shares to its shareholders, with an allocation of 2.96 bonus equity shares for every share held. This move is designed to reward existing investors and attract new ones.
In recent months, Ather Energy has been active in raising funds to support its ambitious growth plans. The company successfully raised ₹286 crore through a combination of debt and equity financing, led by Stride Ventures’ ₹200 crore debt. Additionally, Ather’s co-founders, Tarun Mehta and Swapnil Jain, invested ₹43.28 crore each. These funds are expected to be instrumental in scaling the company’s operations and preparing for the public listing.
Hero MotoCorp, Ather’s largest shareholder, has also increased its stake in the company. Recently, Hero MotoCorp acquired an additional 2.2% stake for ₹124 crore, raising its total shareholding to nearly 40%. The acquisition was part of a transaction where Flipkart co-founder Sachin Bansal sold his remaining 7.5% stake in Ather Energy. This sale included a 2.2% stake to Hero MotoCorp and the remaining to Zerodha co-founder Nikhil Kamath.
Ather recently expanded its product portfolio with the launch of a family scooter range named ‘Rizta.’ Ather’s production capacity stands at 150,000 vehicles per year, with plans to increase this to 450,000 scooters annually following the market introduction of Rizta. This expansion is aimed at meeting the growing demand for electric vehicles in the country. Ather Energy also boasts a comprehensive charging infrastructure with over 2,000 charging points across more than 215 cities in India. Major metropolitan areas, including Bengaluru, Delhi, Chennai, Hyderabad, and Mumbai, are part of Ather’s extensive network.
Despite its aggressive expansion efforts, Ather Energy has faced financial challenges. In the fiscal year 2023 (FY23), the company reported a net loss of ₹864 crore, a significant increase from the ₹344 crore loss reported in the previous year. However, its operating revenue saw a notable increase, jumping 4.3 times year-on-year to ₹1,784 crore. Now, in its path towards its IPO, Ather Energy engaged several prominent investment banks to facilitate the process. HSBC Holdings, Nomura Holdings, and JPMorgan Chase & Co. have been selected to manage the IPO, which is expected to take place in the latter half of 2024, as mentioned earlier. The company is reportedly aiming for a valuation of around $2 billion.
