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Ather Energy Gears Up for IPO by Converting to Public Company

Preeti Bali / 10:16 am / June 26, 2024

Ather Energy, a prominent electric scooter manufacturer, has taken a significant step towards a potential initial public offering (IPO) by converting itself into a public company. This decision signifies the company’s commitment to a definitive IPO plan.

Formal Name Change Reflects Public Status

The board of directors at Ather officially approved a resolution to transform the company’s legal structure from private to public. This change is reflected in the company’s name, which has been updated from Ather Energy Private Limited to Ather Energy Limited.

Recent Funding Strengthens Financial Position

Ather recently secured funding of Rs 286 crore (approximately $34 million) through a combination of debt and equity financing. This included venture debt and contributions from the company’s co-founders.

Strategic Partnership with Hero MotoCorp

According to TheKredible, a startup data intelligence platform, Hero MotoCorp holds a significant stake in Ather, currently at around 38%. This strategic partnership was solidified with a recent investment of Rs 124 crore ($15 million) from Hero MotoCorp.

Market Landscape and Sales Performance

Vahan data indicates that Ather occupies the fourth position among two-wheeler electric vehicle manufacturers in India, capturing a market share of 9.45% in May 2024. currently leads the market, followed by TVS and Bajaj. Ather’s sales figures also show positive growth, with 6,024 units sold in May, compared to 4,000 units sold in April. The company’s total sales for the fiscal year ending March 2024 stood at 17,000 units.

Financial Performance and Competitive Environment

Ather’s financial performance for the fiscal year ending March 2024 reflects a relatively flat growth trajectory. The company’s revenue from operations witnessed a slight decrease of 1.5%, dropping from Rs 1,781 crore in FY23 to Rs 1,754 crore in FY24.

In the competitive electric scooter market, Ather faces significant competition from Ola Electric, which recently received approval from SEBI (Securities and Exchange Board of India) for its $660 million IPO. While Ather experienced modest growth, Ola Electric witnessed a substantial increase in revenue during FY23, with a seven-fold jump to Rs 2,631 crore. Other notable competitors in the market include TVS, Hero Electric, River, and Okinawa.

 

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