Ather Energy Filed DRHP with SEBI: Most Awaited IPO

Ather Energy Private Limited has officially filed a Draft Red Herring Prospectus (DRHP) with SEBI for its upcoming IPO (Initial Public Offering). The public issue is a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 3100 crore of equity shares and an offer for sale worth up to 2.20 crore equity shares. The face value mentioned by the company is Re 1 for each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer reserved for Qualified Institutional Investors, not less than 15% reserved for NII and the remaining 35% or more reserved for Retail Individuals. So, when will the IPO come? The Application for public issue and subscription opening/closing dates and other important dates will be declared soon, and the public issue price band at which you can bid will be declared soon as well.

About Ather Energy Private Limited

Ather Energy Private Limited was founded in 2013 and is considered a pioneer in India's E2W market. The company designs, develops, and manufactures in-house - E2Ws, battery packs, charging infrastructure, and accessories. In FY 2024, Ather Energy was the third-largest player in the country by sales volume, with sales of 109,577 E2Ws. The 2018 launched Ather 450 has shown premium quality and innovative models in the form of cloud integration, traction control, and Alexa voice commands, and very recently the all-new face-lift, the Ather Rizta, that hit the market in 2024.

Ather Energy follows a vertically integrated model with full-time in-house research and development: 48 percent of employees are engaged in R&D. The company manufactures its products at facilities in Hosur, Tamil Nadu. With the expansion of its distribution network, it has a growing list of trademarks and patents-it has 291 and 45 by August 2024. Ather also underscores the virtue of sustainability and efficient capital management, making it a stalwart participant in India's rapidly growing electric vehicle market.

Ather Energy IPO Objectives

The company plans to use the Net Proceeds for the following purposes: capital expenditure for establishing an E2W factory in Maharashtra, repayment or prepayment of certain borrowings, investment in research and development, funding marketing initiatives, and addressing general corporate purposes.

Financials of the Company

Ather Energy Private Limited's financials show some primary changes for the ending years of March 31, 2024 and March 31, 2023. This includes assets declining by 3.2% and thus went from Rs 1,976.8 crore to Rs 1,913.5 crore. The revenue also declined by 1.5%. Thus, it decreased from Rs 1,780.9 crore to Rs 1,753.8 crore. The losses, however, increased by 22.6% after the net loss rose from 864.5 crore to Rs 1,059.7 crore. Positives On the other side, total borrowings declined by 35.1% to Rs 314.9 crore from Rs 485.2 crore. From quarter next onwards, cost control and efforts towards profitability might stabilize the financial outlook to some extent.

Lead manager(s), Registrar of IPO & Promoter(s) of the Company

The issue has been managed by Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, JM Financial Limited and Nomura Financial Advisory and Securities (India) Private Limited. For the company, the registrar dealing with the issue is responsible for its management, which is Link Intime India Private Limited. Tarun Sanjay Mehta, Swapnil Babanlal Jain and Hero Motocorp Limited are the promoters of the company.