Electric two-wheeler manufacturer Ather Energy Ltd is gearing up for the launch of its highly anticipated initial public offering (IPO), which is set to kick off on April 28, 2024. This event marks the first major public offering in the financial year 2025-26 and is expected to create significant buzz in the market.
Key Details of Ather Energy’s IPO
The IPO will span three days, concluding on April 30, 2024. Investors eager to participate can begin placing bids for anchor investor allocations on April 25, 2024. According to the red herring prospectus (RHP), the offering consists of a fresh equity share issuance valued at Rs 2,626 crore, alongside an offer-for-sale involving 1.1 crore equity shares from existing promoters and shareholders.
Strategic Goals for Fund Utilization
Ather Energy aims to utilize the funds raised from this IPO for multiple strategic initiatives, including:
- Establishing a state-of-the-art electric two-wheeler manufacturing facility in Maharashtra.
- Reducing existing debt to strengthen its financial position.
This IPO follows Ola Electric Mobility’s successful public offering of Rs 6,145 crore that took place in August 2023, which also included a fresh equity issuance of up to Rs 5,500 crore and a substantial offer-for-sale of over 8.49 million shares.
Expansion of Research and Development
In addition to its IPO plans, Ather Energy is actively enhancing its research and development capabilities. The company recently announced the expansion of its R&D and testing facilities at its dedicated center, The Juggernaut, located in Bengaluru’s Begur area. This investment underlines Ather’s commitment to innovation and quality in the electric two-wheeler sector.
As the electric vehicle market continues to gain momentum, Ather Energy’s upcoming IPO and strategic initiatives position it as a formidable player in the industry. Investors and enthusiasts alike will be watching closely as the company prepares to take this critical step towards growth and expansion.
