Bengaluru-based electric two-wheeler manufacturer Ather Energy got one step closer to its IPO. Ather Energy equity conversion involves converting all its compulsorily convertible preference shares (CCPS) into equity shares. This conversion is as per regulations and enhances Ather’s IPO readiness. As per reports, the Ather IPO is expected to launch in April 2025. It would be the second Indian EV startup to go public after Ola Electric.
Ather Energy Equity Conversion Details
As per the recent RoC filings, Ather Energy’s board has approved the conversion of 1.73 crore outstanding CCPS into 24.04 crore fully paid-up equity shares on 08 March 2025. These equity shares of face value INR 1 each will have the same rights as existing shares.
The conversion includes CCPS of multiple series issued over time – Seed (One to Four), Series A to G and Bonus CCPS and E series (E, E1, E2). This is as per SEBI’s ICDR which mandates CCPS conversion before filing the RHP.
Ather IPO: Timeline and Structure
With the Ather IPO expected in April 2025, the company is looking to raise a significant amount. As per the draft papers, the IPO will consist of:
- Fresh issue of equity shares of INR 3,100 crore
- Offer for sale (OFS) of up to 2.2 crore equity shares by existing investors and promoters.
Tiger Global, Caladium Investments, National Investment and Infrastructure Fund (NIIF), Binny Bansal’s 3 State Ventures, and co-founders Tarun Mehta and Swapnil Jain are looking to dilute their stake. But Hero MotoCorp, which owns a 37.2% stake in Ather, will not be participating in the OFS. Additionally, it plans to raise INR 620 crore in a pre-IPO placement to strengthen the company’s position before the public listing.
How Ather Energy Will Use the IPO Proceeds
The funds raised through Ather IPO will be used for:
- R&D
- Marketing initiatives to drive sales and brand visibility.
- Infrastructure development, including manufacturing facilities.
- Capacity expansion to meet growing EV demand.
- General corporate purposes and debt reduction.
The company also intends to use a portion of the funds to set up an advanced electric two-wheeler factory in Maharashtra.
Ather Energy’s Market Expansion and Industry Trends
Ather Energy has been expanding its presence in the Indian EV space. The company recently upgraded its R&D and testing capabilities at its Bengaluru-based product validation centre, ‘The Juggernaut. ’
As India’s electric vehicle (EV) industry is growing fast, the Ather IPO is expected to attract institutional and retail investors. This will be after Ola Electric’s INR 6,145 crore IPO in August 2024, the first IPO by an automaker in India in over two decades.
Beyond Ather, other EV players are also gearing up for public listings. Greaves Electric Mobility, the parent company of Ampere Electric, filed its DRHP in December 2024 for an IPO of over INR 1,000 crore. Hyderabad-based Pure EV has also become a public company and is expected to IPO in 2025.
Ather Energy IPO and Market Outlook
With Ather Energy’s equity conversion complete, the company is all set for its IPO in April 2025.
As the IPO approaches, investor sentiment will be driven by Ather Energy’s performance, market position and strategy. If successful, this will be the second EV startup to go public in India.
Key Points to Note
- Ather Energy has completed equity conversion, a pre-IPO step.
- Ather IPO in April 2025 with fresh issue of INR 3,100 crore and OFS of INR 2.2 crore.
- IPO funds will be used for R&D, marketing, capacity expansion and corporate expenses.
- IPO will follow Ola Electric’s successful IPO and will increase competitiveness in India’s EV market.
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