Ola Electric Rival Ather Energy Gets SEBI Permission for IPO Launch

Ather Energy, one of the big electric two-wheeler companies, has got the green signal from market regulator SEBI to launch an Initial Public Offer (IPO). The company plans to raise around Rs 3,100 crore through stock market listing. This will include issuance of new equity shares as well as offer-for-sale of approximately 2.2 crore equity shares by promoters and investors.

The country’s largest two-wheeler maker Hero MotoCorp holds about 37.2 percent stake in Ather Energy. However, Hero MotoCorp will not participate in the offer-for-sale. Ola Electric has the largest share in the market of electric two-wheelers. Rivals of this company include Ather Energy.

Recently Ola Electric had raised more than $73 crore through IPO. The company’s shares were listed at more than double the IPO price. However, since then the share of Ola Electric has fallen significantly. Ather Energy has said that it will use the funds received from the IPO to set up a factory for electric two-wheelers in Maharashtra and for research and development. Recently the company started its business in Sri Lanka. The company has tied up with Evolution Auto for business in Sri Lanka.

Ather Energy also plans to launch a fast charging network. Since opening its first international outlet in Nepal last year, the company has started three experience centers and seven fast charging grids there. The company has more than 200 experience centers in the country. At the end of last year, Ather Energy had achieved the figure of manufacturing two lakh electric scooters. The company’s factory is in Hosur, Tamil Nadu. Ather Energy’s four electric scooters are 450S, 450X, 450 Apex and Rizta. A few months ago the company launched the family scooter Rizta. It has a longer and wider seat than other electric scooters. Greaves Electric Mobility, maker of Ampere electric scooter, has also recently filed documents for an IPO. Greaves Electric Mobility plans to raise around Rs 10 billion through a stock market listing. In this, the company’s largest shareholder Greaves Cotton will also sell a large number of shares.