Ather Energy gets SEBI nod for fundraise via IPO launch. Details here

Ather Energy, the electric two-wheeler manufacturer, has received final approval from capital markets regulator Securities and Exchange Board of India (SEBI) to float its initial public offering (IPO).

Ather Energy received the observation letter from SEBI on December 23. In SEBI’s parlance, issuance of an observation letter implies approval for the public offering.

According to the company’s Draft Red Herring Prospectus (DRHP) filed in September this year, Ather Energy IPO will be a combination of fresh issue of equity shares worth ₹3,100 crore, and an offer-for-sale of 2.2 crore equity shares by promoters and investors.

Hero MotoCorp, Ather’s biggest shareholder with a 37.2% stake, will not participate in the OFS. Tiger Global, Caladium Investments, National Investment and Infrastructure Fund (NIIF), Binny Bansal’s 3 State Ventures, and cofounders Tarun Mehta and Swapnil Jain will sell their stakes via the OFS.

Ather Energy also plans to raise ₹620 crore through a pre-IPO placement and if such placement is undertaken, the amount will be deducted from the total fresh issue size, as per DRHP.

The Bengaluru-based startup will be the second Electric Vehicle (EV) maker in the country to list on the bourses after its rival Ola Electric Mobility made a stock market debut in August.

Other IPOs

Along with Ather Energy, SEBI also approved the draft IPO papers of five other companies. These include Ivalue Infosolutions, Oswal Pumps, Fabtech Technologies, Quality Power Electrical Equipments and Schloss Bangalore.

The DRHPs of Ivalue Infosolutions and Ather Energy received SEBI observation letters on December 23, while the Oswal Pumps received the letter on December 24.

DRHPs of Quality Power Electrical Equipments, and Fabtech Technologies were approved on December 27, and Schloss Bangalore on December 26.

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