Electric two-wheeler manufacturer Ather Energy has received final approval from the Securities Exchange Board of India (SEBI) to begin its initial public offering (IPO).

Although the business has not yet submitted its RHP paperwork, the Draft Red Herring Prospectus suggests that the total IPO amount may be around Rs 4,500 crore. If the IPO gets started, Ather Energy will be the second company to list on the bourses after its competitor, Ola Electric Mobility, made its debut in August.

The electric two-wheeler manufacturer filed draft documents on 9 September in an effort to raise funds for debt reduction and the building of an E2W (electric two-wheeler) factory in Maharashtra. 

The IPO would include an offer by investors and promoters to sell 2.2 crore equity shares in addition to a new issue of equity shares priced at Rs 3,100 crore.

People close to Moneycontrol say the company wants to be valued at around $2.5 billion. It has doubled its valuation since its most recent fundraising effort. After raising $71 million in a new funding round headed by its current partner, the National Investment and Infrastructure Fund (NIIF), Ather Energy became a unicorn company in August 2024. As a result, the company was valued at $1.3 billion.

For the fiscal year 2024, Ather Energy’s consolidated revenue was Rs 1,753 crore, a 1.7% year-over-year (YoY) decline.

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