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Ather Energy, which makes electric scooters, is hiring investment bankers to help it with its initial public offering (IPO) this year, according to people familiar with the matter.
The Bengaluru-based firm is planning to raise an estimated $400 million (Rs 3,300 crore) through the IPO. The company is targeting a valuation of about $2 billion, according to sources. Ather declined to comment on its IPO plans.
“The company has met the bankers,” said a person. “The firm also has plans to prepare and file the Draft Red Herring Prospectus (DRHP).”
Ather competes with players such as Ola Electric, Bajaj, Ampere, Hero MotoCorp, and TVS Motor Company. It has been trying to achieve profitability as it prepares for the IPO.
Hero MotoCorp, India’s largest two-wheeler maker, owns about 39 per cent in Ather Energy.
The sale of scooters was the primary source of revenue for Ather. Some portion of its operating income also came from the after-sale and subscription services.
Ather’s net loss jumped 151.2 per cent year-on-year to Rs 864.5 crore in FY23 as the firm continued to focus on expanding volumes and market share.
The firm has two manufacturing facilities, which have the capacity to produce 430,000 batteries and 420,000 vehicles annually. Along with the upcoming family scooter, the upgraded 450X called Apex, and its current product spread, Ather’s volumes are set to grow four-fold to 400,000 vehicles a year by FY26.
The surge in demand for electric two-wheelers in India has been remarkable, catapulting from less than 100,000 between FY18 and FY23 to around 1.2 million, with 60 per cent of them being two-wheelers. India now aspires to boost its electric-vehicle volumes to 30 per cent of the vehicle market by 2030.
Ather was founded by Tarun Mehta and Swapnil Jain, graduates of IIT Madras, in 2013. It has raised $445 million from investors including Tiger Global, Flipkart founders Sachin Bansal and Binny Bansal, and India’s quasi-sovereign fund National Investment and Infrastructure, according to Tracxn
Over the years, Ather has been working closely with industry leaders to design, develop, and produce crucial components.
