Ather Energy plans $370 million IPO in India

Ather Energy, an Indian electric scooter manufacturer based in Bengaluru, is planning to raise approximately $370 million through an initial public offering (IPO) as outlined in its draft prospectus. The company aims to capitalize on the increasing demand for electric vehicles in India, which is the third-largest auto market globally. Ather, which has been operating at a loss, competes with Ola Electric and holds about 19% of the electric two-wheeler market share as of August. The IPO will involve issuing fresh shares and selling up to 22 million shares from existing investors. Ather Energy is targeting a valuation between $1.5 billion and $2 billion. The funds raised will be allocated towards establishing a new manufacturing facility in Maharashtra, repaying debts, and investing in research and development. The electric vehicle market in India is experiencing rapid growth, driven by government incentives and rising fuel prices. The country has set ambitious targets for electric vehicle adoption, aiming for 30% of private cars and 70% of commercial vehicles to be electric by 2030. Ather Energy's plans come at a time when traditional automotive giants are also increasing their focus on the EV sector. Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather has raised around $500 million in funding. Despite reporting a loss of $126 million against a revenue of $213 million for the fiscal year ending in March, the company is well-positioned to compete in a market that is becoming increasingly crowded with both startups and established automakers.