With a vision to tap into the burgeoning demand for electric vehicles in India, Ather Energy, an Indian electric scooter manufacturer, is gearing up for an impressive initial public offering (IPO) that is set to raise approximately $370 million. This bold move comes as the startup aims to leverage the country’s position as the world’s third-largest auto market.
Here’s what to expect from Ather Energy’s upcoming IPO:
- Issuing fresh shares to raise $370 million.
- Selling up to 22 million shares from existing investors.
- Targeting a valuation of $1.5 billion to $2 billion.
The company, headquartered in Bengaluru, has gained traction in the electric two-wheeler market, holding a 19% share as of August. Backed by India’s Hero MotoCorp and the National Investment and Infrastructure Fund, Ather Energy plans to utilize the funds raised to establish a new manufacturing facility in Maharashtra, repay debts, and invest in research and development.
As the Indian electric vehicle market intensifies, fueled by government incentives and surging fuel prices, Ather Energy’s IPO arrives amidst heated competition in the industry. With traditional giants also eyeing a piece of the pie, the landscape is ripe for innovation and growth.
- Ather’s distinct design approach with 80% of key components designed in-house.
- Previous funding rounds totaling $500 million, demonstrating investor confidence.
- Strong market presence with a 19% market share, positioning it as a key player in the industry.
Rivalry in the electric scooter market is fierce, with well-funded startups and established automakers vying for dominance. Ather Energy faces competition from recently listed Ola Electric, as well as industry stalwarts like Bajaj Auto and TVS Motor who are making significant strides in the electric scooter segment.
- Competing against Ola Electric, Bajaj Auto, and TVS Motor.
- Government initiatives driving the electric vehicle market.
- Focus on electric two-wheelers amid shifting consumer preferences.
In preparation for its IPO, Ather Energy has enlisted the expertise of Axis Capital, HSBC, JM Financial, and Nomura as book-running lead managers. As the Indian electric vehicle market expands rapidly, Ather Energy’s IPO signifies a pivotal moment in the journey towards a greener, more sustainable future.
