Ather Energy IPO: Indian electric two-wheeler manufacturer Ather Energy on Monday filed its draft red herring prospectus (DRHP) for the Securities Exchange Board of India (SEBI) to announce an IPO.
It also includes a fresh offering of shares valued at Rs 3,100 crore ($369.4 million). Ather is the second electric vehicle maker with two wheels to be listed on the exchange.
The company’s IPO was announced earlier this month. With the support of Indian bicycle maker Hero MotoCorp, Ather makes electric scooters. They are also a rival of Ola Electric.
What Did The Company Say?
According to DRHP the investors as well as some major shareholders will be able to sell as much as 22 million shares as part of the IPO.
GIC Ventures will sell 47.8 percent of the offer to buy (OFS) through its company subsidiary Caladium Investments, while Tiger Global and 3 States Ventures will sell 18.1 percent and 2.18 percent of the offer to sell.
Tarun Mehta as well as Swapnil Jain also be part of the offer in the offer by selling the equivalent of 10 lakh shares.
As per DRHP, Hero MotoCorp is the biggest shareholder outside of it with 37.2 percent which is then GIC (Caladium Investment) and NIIF which have 15.04 percent and 10.29 percent, respectively.
The company, however, Hero MotoCorp will not be a participant as a participant in the OFS.
The co-founders of the company, Tarun Sanjay Mehta as well as Swapnil Babanlal Jain both hold a 13.26 percent stake in the firm.
Axis Capital, Nomura Financial, HSBC Securities, and JM Financial are the book-running managing the issue’s lead managers.
Company Plans
Ather stated that the money that is raised through this IPO is to be utilized to fund capital expenditure as well as research and development to set up the electric two-wheeler manufacturing plant located in Maharashtra.
The management team of the book-running company managing the issue is Axis Capital and JM Financial.
Quick Fact
| Company name | Ather Energy |
|---|---|
| IPO value | ₹3,100 crore |
| Total shares offered in IPO | 22 million shares |
| OFS participant – GIC Ventures (Caladium Investments) | 47.8% |
| OFS participant – Tiger Global | 18.1% |
| OFS participant – 3 States Ventures | 2.18% |
| OFS participant – Tarun Mehta & Swapnil Jain | 10 lakh shares |
| Hero MotoCorp stake | 37.2% |
| GIC (Caladium Investment) stake | 15.04% |
| NIIF stake | 10.29% |
| Co-founders’ stake (Tarun Mehta & Swapnil Jain) | 13.26% |
| OFS participation by Hero MotoCorp | No |
| IPO fund usage | Capital expenditure, R&D, and a new manufacturing plant in Maharashtra |
| Lead managers | Axis Capital, Nomura Financial, HSBC Securities, JM Financial |
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