June 25, Bengaluru: Ather Energy, a renowned manufacturer of electric vehicles (EVs), has effectively transitioned from a private entity to a public limited company, marking a significant milestone in its expansion. Ather’s most recent annual general meeting approved this strategic decision, which is a significant milestone in the company’s development. In parallel with this transition, the organization’s ambitious expansion objectives are evident in the substantial increase in its authorized share capital from ₹93.6 lakh to ₹50 crore.
Financial Growth and Strategic Moves
This period of extraordinary financial expansion and strategic investments is concomitant with the expansion of Ather Energy. ₹286 crore was recently raised by the company through a combination of debt and equity. Stride Ventures invested nearly ₹200 crore in debentures, while co-founders Tarun Mehta and Swapnil Jain each contributed ₹43.28 crore, demonstrating their unwavering dedication to the company’s future.
Market Valuation and IPO Plans
At present, Ather Energy is in the process of preparing for its initial public offering (IPO) in the latter half of 2024, with the objective of achieving a valuation of approximately $2 billion. HSBC Holdings Plc, Nomura Holdings Inc., and JPMorgan Chase & Co. are responsible for the supervision of this critical procedure on behalf of the company. Ather is expected to reach the next phase of its development trajectory with the IPO, which is expected to attract a broader base of investors and stakeholders.
Shareholder Investments of Significance
Hero MotoCorp, the organization’s largest shareholder, recently reaffirmed its confidence in Ather Energy by increasing its stake by 2.2 percent and investing ₹124 crore. This increases Hero MotoCorp’s total shareholding to approximately 39 percent. The most recent investment, which was made at an inferred valuation of ₹5,636 crore, is a testament to the strong market confidence in Ather’s potential.
New Product Launches and Expansion
Ather Energy has been actively expanding its production capabilities and product array in accordance with its growth objectives. The recent introduction of the ‘Rizta’ family scooter range has substantially expanded the company’s portfolio. At present, Ather’s annual production capacity is 150,000 scooters. This capacity is expected to be increased to 450,000 scooters annually following the Rizta’s market début by the company. The objective of this expansion is to satisfy the increasing demand for electric vehicles (EVs) in India.
Future Prospects and Operational Footprint
Ather Energy, which was established in 2013 by visionaries Tarun Mehta and Swapnil Jain, has made substantial progress in the electric vehicle industry. In 2022, the company secured approximately $128 million in investments from the National Investment and Infrastructure Fund Ltd. and existing shareholders, including Hero MotoCorp Ltd. in a Series E round. At present, Ather maintains more than 2,000 charging stations in more than 215 cities, including Bangalore, Delhi, Chennai, Hyderabad, Pune, Jaipur, Kochi, Ahmedabad, Mumbai, and Kolkata, all of which are significant urban centers.
Market Competition and Future Prospects
Ather Energy’s transition to a public limited company is concurrent with Ola Electric’s preparation for its initial public offering. Ola Electric has recently received sanction from the Securities and Exchange Board of India (SEBI) to conduct its initial public offering (IPO) with the objective of raising ₹5,500 crore. The Indian EV market’s dynamic and swiftly changing nature is underscored by this competitive landscape.
In conclusion,
Significant milestones in Ather Energy’s development trajectory include its conversion to a public limited company and its intention to pursue an initial public offering (IPO). Ather Energy is well-positioned to capitalize on the burgeoning EV market in India, as it has a substantial operational footprint, robust financial support, and strategic expansions. The company’s performance will be closely monitored by investors and industry observers as it prepares for its public début in 2024.
This strategic shift not only reinforces Ather’s market position but also emphasizes the growing investor confidence in the Indian EV sector. Ather is poised to significantly influence the future of sustainable transportation in India as it continues to innovate and expand.
