Ather Energy Plans IPO with Reduced Valuation, Targets ₹10,461 Cr
Electric vehicle (EV) manufacturer Ather Energy, backed by Hero MotoCorp, is gearing up for an initial public offering (IPO) with a reduced valuation of ₹10,461 crore, down from the initially targeted ₹17,439 crore, according to a recent report by Bloomberg. The company has made significant progress in advancing its IPO plans, having recently converted its compulsory convertible preference shares into equity.
The IPO, which is expected to raise approximately ₹3,487 crore, is likely to hit the markets by late March or early April. With this public issue, Ather Energy aims to tap into the growing demand for EVs in India and expand its operations, which have been gaining momentum in recent years.
Ather Energy, founded in 2013, is one of the most successful EV startups in India, with a strong focus on innovation and technology. The company has been making waves in the EV landscape with its range of products, including the Ather 450X and Ather 450 Plus scooters, which have received an overwhelming response from customers.
The company’s decision to reduce its valuation from ₹17,439 crore to ₹10,461 crore could be attributed to the current market conditions, which have been volatile in recent months. However, despite the reduced valuation, the IPO is still expected to be a significant event in the Indian capital markets, considering the growing interest in EVs and the company’s potential for growth.
Ather Energy’s IPO will be a public issue, which means that the company will offer shares to the general public, including institutional investors, high net worth individuals, and retail investors. The IPO will be managed by Kotak Mahindra Capital Company, CLSA India, and ICICI Securities, according to the report.
The company’s financial performance has been impressive, with revenue growth of over 100% year-on-year (YoY) in the fiscal year 2021-22. Ather Energy’s revenue stood at ₹1,144 crore in FY22, up from ₹561 crore in FY21. The company’s net loss, however, widened to ₹1,034 crore in FY22, compared to ₹644 crore in FY21.
Despite the widening loss, the company’s growth prospects are promising, driven by the increasing demand for EVs in India. The Indian government has been actively promoting the adoption of EVs, with a target of reaching 30% of all new vehicle sales by 2030. Ather Energy is well-positioned to benefit from this trend, with its range of products and expanding network of charging stations.
In recent years, Ather Energy has been expanding its operations, including the launch of new products, expansion of its manufacturing capacity, and the establishment of a robust network of charging stations. The company has also been investing in research and development, with a focus on improving the technology and performance of its products.
Ather Energy’s IPO is expected to be a significant event in the Indian capital markets, considering the growing interest in EVs and the company’s potential for growth. The IPO will provide an opportunity for investors to participate in the company’s growth story and benefit from the increasing demand for EVs in India.
In conclusion, Ather Energy’s plans to go public with a reduced valuation of ₹10,461 crore are a significant development in the Indian capital markets. The company’s decision to convert its compulsory convertible preference shares into equity has advanced its IPO plans, which are expected to raise approximately ₹3,487 crore. With a strong focus on innovation and technology, Ather Energy is well-positioned to benefit from the growing demand for EVs in India and expand its operations.
