Ola Electric rival Ather Energy converts to public limited company ahead of IPO launch, says Report

Bengaluru-based electric scooter maker Ather Energy has reportedly converted from a private limited company to a public limited company.

According to the Inc42 report, Ather Energy's board approved the change at its annual general meeting (AGM) last week, and the company has now changed its name from Ather Energy Pvt Ltd to Ather Energy Ltd.

The report said that the EV maker has increased its authorized share capital to Rs 50 crore from Rs 93.6 lakh. Additionally, it will issue 2.96 bonus shares for every share held by its shareholders.

The development comes after Sachin Bansal, co-founder of Flipkart, exited from Ather Energy after selling a 7.5% stake. Hero MotoCorp also announced earlier this month that it will be acquiring an additional 2.2% stake in Ather Energy for Rs 124 crore.

While the company didn't reveal from whom it will acquire a stake, an ET report said Sachin Bansal sold his 2.2% stake to Hero MotoCorp and the rest to Zerodha co-founder Nikhil Kamath.

It's worth noting that Hero MotoCorp is a significant investor in Ather Energy, which also includes notable stakeholders like Tiger Global and GIC of Singapore. Hero MotoCorp's total stake in Ather Energy is reportedly at around 41.9%.

Last month, the EV maker also raised Rs 286 crore, or about $34 million, through a mix of debt and equity, primarily venture debt and contributions from co-founders. 

While the company didn't make any official announcement regarding this fundraise, Entrackr reported that a New Delhi-based venture debt firm, Stride Ventures, invested close to Rs 200 crore via non-convertible debentures, while the company's co-founders, Tarun Sanjay Mehta and Swapnil Jain, each contributed Rs 43.28 crore via Series F preference shares.

Ather Energy is also finalising to raise $75-90 million in primary funding from new and existing investors at a valuation of up to $1 billion, ET reported in April this year. 

Notably, Ather Energy has reportedly selected global banking powerhouses HSBC Holdings Plc, Nomura Holdings Inc., and JPMorgan Chase & Co. to spearhead its upcoming initial public offering (IPO), Bloomberg reported earlier in March this year.

The report also mentioned that Ola Electric's rival has also brought on board Indian financial institutions JM Financial Ltd and Axis Bank Ltd to navigate through its market debut, aiming for a valuation of around $2 billion.

In early April 2024, Ather introduced 'Rizta,' its inaugural scooter designed for families. The scooter, which starts from Rs 1,09,999, was unveiled during Ather's Community Day event in Bengaluru.

The 'Rizta' scooter, which has been in development since 2019, is designed for strength, safety, and comfort. The 'Rizta' starts with two models and three variants, with prices extending up to Rs 1,45,000 for the top-end variant.