homemarket NewsExclusive | Ather Energy IPO: E scooter maker Ola Electric's rival pads up to list on D Street by Diwali 2024

Exclusive | Ather Energy IPO: E-scooter maker Ola Electric's rival pads up to list on D-Street by Diwali 2024

Industry sources say Ather is banking on the family scooter to significantly drive up sales volumes ahead of the IPO.

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By Parikshit Luthra  Dec 14, 2023 2:54:31 PM IST (Published)

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Exclusive | Ather Energy IPO: E-scooter maker Ola Electric's rival pads up to list on D-Street by Diwali 2024
Ather Energy, one of the first electric two-wheeler startups in India, is gearing up for its initial public offering (IPO). The maker of the 450X electric scooter aims to list on Dalal Street by Diwali next year or early 2025, a source aware of the developments told CNBC-TV18 on December 14.

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Ather has started seeking inputs on the IPO plan and valuations and is likely to appoint bankers by March 2024, the source said. The person added that the process of appointing independent directors will be completed shortly.
Launched in 2013, by IIT Madras graduates Tarun Mehta and Swapnil Jain, Ather has sold over 1.73 lakh electric scooters to date. Currently, Ather is among the top four electric scooter manufacturers in the country, along with Ola Electric, TVS and Bajaj Auto.
The company has a 12% market share in the electric two wheeler segment, and will soon begin deliveries of its high performance 450 Apex scooter. Ather is placing a big bet on its new family scooter that will be launched by May 2024.
Industry sources say Ather is banking on the family scooter to significantly drive up sales volumes ahead of the IPO.
Ather Energy's plans for an IPO had been delayed because of reduction in FAME subsidies but the company is now in full preparation mode. "Ather is not looking to wait for profitability but will target a revenue run rate of Rs 3,500-4,000 crore before going for an IPO", an industry source said, requesting anonymity.
Ather Energy is backed by India's largest two-wheeler maker by volume Hero MotoCorp, which has a 34% stake in the EV startup. Sources say, Ather may be open to another round of funding before going for a public listing.
The company's big focus currently is also on ramping up the sales footprint. It is looking to launch 15-20 new stores every month and have at least 400-450 stores by the end of 2024.
CNBC-TV18 has reached out to Ather Energy for a comment and is awaiting a reply.
The development comes days after sources suggest that Ola Electric is preparing to file a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) before December 20, 2023.

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