SEBI Approves Ather Energy's IPO Plan, Company to Raise Rs 3,100 Crore

Electric two-wheeler manufacturer Ather Energy has received final approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering. The regulator issued its observation letter on December 23, signaling the green light for the company's public listing plans.

According to the Draft Red Herring Prospectus filed in September, Ather Energy's IPO will comprise a fresh issue of equity shares worth Rs 3,100 crore and an offer-for-sale of 2.2 crore equity shares by existing investors. The company also plans to raise Rs 620 crore through a pre-IPO placement, which would reduce the fresh issue size if completed.

Notable shareholders participating in the offer-for-sale include Tiger Global, Caladium Investments, National Investment and Infrastructure Fund, Binny Bansal's 3 State Ventures, and cofounders Tarun Mehta and Swapnil Jain. However, Hero MotoCorp, which holds the most significant stake at 37.2%, will not participate in the share sale.

Bengaluru-based Ather Energy is set to become the second electric vehicle manufacturer to list on the Indian stock exchange. Its main rival, Ola Electric Mobility, made its market debut in August 2024. This listing comes at a time of increasing interest in India's growing electric vehicle sector.

SEBI also approved IPO applications from five other companies on the same day, including Ivalue Infosolutions, Oswal Pumps, Fabtech Technologies, Quality Power Electrical Equipments, and Schloss Bangalore, with observation letters issued between December 23 and 24.