16 February 2024 – In the electric mobility surge, Bengaluru-based Ather Energy, backed by Hero MotoCorp, is considering a significant leap into public markets. The electric two-wheeler startup has engaged with investment banks for discussions on a potential Initial Public Offering (IPO) in India. Ather aims to raise around $400 million through the IPO, with a projected valuation of approximately $2 billion, signaling its ambitious plans for expansion and growth.
Ather Energy, a prominent player in the electric two-wheeler space, is in talks for a potential IPO in India, eyeing substantial funding for its aggressive expansion strategies. Sources indicate discussions are underway, although final decisions on the IPO are yet to be solidified.
Ather Background:
Founded in Bengaluru, Ather Energy has rapidly emerged as a key player in the electric vehicle domain. Backed by Hero MotoCorp, the company has witnessed robust growth, especially with the success of its Ather 450X e-scooter. The potential IPO aligns with Ather’s vision to further accelerate its footprint across the country.
Ather is contemplating an IPO as early as this year, aiming to raise around $400 million. The infusion of capital is earmarked for crucial aspects of its business, including manufacturing facilities, product development, charging infrastructure, and expanding its retail network. The IPO could potentially value Ather at a substantial $2 billion.
While the intention is to seize favorable market conditions and propel growth through a 2023 IPO, the discussions are in the early stages, and specifics such as the launch timeline and valuation may evolve. Ather is expected to carefully evaluate market sentiment, competitive dynamics, and its own financial standing before finalizing any concrete IPO plans.
Conclusion:
Ather Energy’s exploration of a significant IPO reflects its commitment to capitalizing on the burgeoning demand for electric vehicles in India. With Hero MotoCorp’s backing, the startup aims to leverage public markets to fuel its expansion and contribute to the evolving landscape of sustainable mobility. The final decision on the IPO will likely hinge on a strategic assessment of market conditions and the company’s growth trajectory in the coming months.
