Ather Energy Converts to Public Company Ahead of IPO
- ByStartupStory | June 25, 2024
Ather Energy, a leading electric vehicle (EV) manufacturer, has transitioned from a private to a public company. The resolution to convert Ather Energy Private Limited to Ather Energy Limited was passed at the company’s annual general meeting held last week, according to a report by Inc42.
In line with this transition, the authorized share capital of Ather Energy has seen a substantial increase from Rs 93.6 lakh to Rs 50 crore. This development is a strategic step as the company gears up for its IPO, anticipated in the second half of 2024. Reports from several months ago suggested that Ather Energy had enlisted the expertise of HSBC Holdings Plc, Nomura Holdings Inc., and JP Morgan Chase & Co. to manage the IPO, with a projected valuation of approximately $2 billion.
Last month, Ather Energy secured Rs 286 crore through a mix of debt and equity. The funding round included a significant investment from the company’s co-founders and Stride Ventures. Co-founders Tarun Mehta and Swapnial Jain collectively invested Rs 43.28 crore, while Stride Ventures contributed around Rs 200 crore via debentures, as reported by Inc42.
As Ather Energy prepares for its public listing, it faces competition from Ola Electric, another major player in the EV market. Ola Electric is also planning to go public, aiming to raise up to Rs 5,500 crore. The Securities and Exchange Board of India (SEBI) recently approved Ola Electric’s IPO, setting the stage for a competitive market landscape.
Ather Energy was founded in 2013 by IIT graduates Tarun Mehta and Swapnil Jain. The company specializes in designing and manufacturing electric vehicles in India. According to data from Tracxn, as of June 7, 2024, Ather Energy has a valuation of $679 million and has raised a total of $431 million in funding.
Market data from the Society of Manufacturers of Electric Vehicles (SMEV) highlights the competitive nature of the EV sector. Ola Electric leads the market with a 34 percent share, followed by TVS Motors at 19 percent, and Ather Energy with an 11 percent share.
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