Ather Energy IPO: Indian electric two-wheeler maker Ather Energy on Monday filed its draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) for an IPO. This includes a fresh issue of shares worth Rs 3,100 crore ($369.4 million). Ather will be the second two-wheeler EV maker to make its debut on the stock exchange. Earlier, Ola Electric’s IPO came last month. Backed by Indian bike maker Hero MotoCorp, Ather makes electric scooters and is a competitor of Ola Electric.
What did the company say?
According to the DRHP, investors and some large shareholders will sell up to 22 million shares in the IPO. GIC Ventures will sell 47.8% of the total offer for sale (OFS) through its subsidiary Caladium Investment, while Tiger Global and 3 States Ventures will sell 18.1% and 2.18% of the offer for sale. Tarun Mehta and Swapnil Jain will also participate by offering 10 lakh shares each. According to the DRHP, Hero MotoCorp is the largest external shareholder with 37.2%, followed by GIC (Caladium Investment) and NIIF, which hold 15.04% and 10.29%, respectively. However, Hero MotoCorp will not participate in the OFS. Its co-founders Tarun Sanjay Mehta and Swapnil Babanlal Jain together hold 13.26% stake in the company. Axis Capital, HSBC Securities, Nomura Financial and JM Financial are the book-running lead managers to the issue.
corporate planning
Ather said the funds raised from the IPO will be used for capital expenditure and research and development to set up an electric two-wheeler factory in the Indian state of Maharashtra. The book-running lead managers to the issue include Axis Capital and JM Financial.