Ather Energy Converts to Public Entity Ahead of IPO

Ather Energy, the electric scooter manufacturer, has taken a significant stride toward its eagerly anticipated initial public offering (IPO). During its annual general meeting, the company’s board passed a resolution to transform Ather Energy from a private limited company to a public entity. As part of this transition, the company’s official name has been changed from Ather Energy Private Limited to Ather Energy Limited.

Ather’s Recent Funding and Market Position

Ather Energy recently secured Rs 286 crore ($34 million) through a combination of debt and equity, including venture debt and contributions from co-founders. Notably, Hero MotoCorp, an associate company of Ather, now holds approximately 38% stake after investing Rs 124 crore ($15 million) earlier this month. Ather’s valuation during its Series E funding round stood at $750 million, and it has raised over $550 million to date.

Electric scooter

In terms of market share, Ather is making waves. According to Vahan data, it ranked as the fourth-largest two-wheeler electric vehicle (EV) manufacturer in May, capturing 9.45% of the market. Ola Electric leads the pack, followed by TVS and Bajaj. Ather’s sales have been on an upward trajectory, with 6,024 units sold last month (up from 4,000 units in April) and a total of 17,000 units in March.

The Competitive Landscape

As Ather gears up for its IPO, it faces competition from several players. Ola Electric, which recently received SEBI’s approval for a $660 million IPO, is a formidable rival. In FY23, Ola Electric’s revenue from operations surged seven-fold to Rs 2,631 crore. Other competitors include TVS, Hero Electric, River, and Okinawa.

Ather Energy’s transformation into a public entity signals its commitment to growth and innovation in the EV space. Investors and enthusiasts eagerly await its next move as it prepares to go public.


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