Ather Energy to file DRHP next week to raise Rs 4,500 crore via IPO: Report

EV maker Ather Energy, best known for its premium electric scooters, is set to launch its initial public offering (IPO) in the coming months.

A Moneycontrol report indicated that the Bengaluru-based EV maker is expected to file its Draft Red Herring Prospectus (DRHP) with SEBI next week, aiming to raise between Rs 4,000 crore and Rs 4,500 crore through a mix of fresh issue and offer for sale (OFS).

The report comes a month after Bhavish Aggarwal-led Ola Electric went public, doubling investors' wealth within 11 days of its listing.

Targeting a double-valuation

The report noted that Ather Energy is targeting a valuation of approximately $2.5 billion, nearly double the valuation it achieved during the last funding round.

Last month, the EV maker entered the unicorn club after raising $71 million (Rs 596 crore) in a funding round led by the government-owned National Investment and Infrastructure Fund (NIIF).

Although there was no official announcement regarding the fundraising, multiple media reports suggest that the Ola Electric rival has reached a valuation of $1.3 billion.

Funding and investors

Since its inception, Ather Energy has raised over $570 million in funding from prominent investors, including Stride Ventures, Hero MotoCorp, GIC, Caladium Investments, Herald Ventures, InnoVen Capital, and Zerodha co-founder Nikhil Kamath.

Notably, Hero MotoCorp is a significant shareholder, holding approximately 40% stake in the Ola Electric rival. In June, Hero MotoCorp announced plans to increase its stake by 2.2% in the company for Rs 124 crore. 

Who are the founders?

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy designs, manufactures, and sells electric two-wheelers, including popular models such as the Ather 450X, Ather 450 Plus, Ather 450S, and Ather Rizta.

The startup also has an extensive network of over 1,400 charging stations across 100 cities.