Ather Energy, a manufacturer of electric two-wheelers, plans to value itself at up to $2.4 billion in its next initial public offering (IPO). That represents a premium of almost 80% over the company's previous investment round in August, when it became a unicorn.
After providing the Securities and Exchange Board of India (Sebi) with final clarifications, Ather is anticipated to submit its revised draft red herring prospectus (DRHP) later this month or the first week of February, according to the people.
Companies like Ather and Bluestone are expected to price their offerings higher, reflecting both their own intentions and the competitive landscape, in contrast to the number of new-age enterprises that listed last year and adopted a cautious approach to valuation.
Increasing Market Share
A person with knowledge of the situation stated, "Ather will seek a valuation of $2.2-2.4 billion, according to current conversations." Sebi has approved Ather's Rs 3,100 crore ($360 million) plan, making it the nation's second EV startup IPO following Ola Electric's. The individual stated that "some minor updates are to be given; work is closing and (they) should be submitted soon."
Nikhil Kamath, a well-known podcaster and cofounder of Zerodha, will also benefit from one of the fastest value increases due to the IPO price, as his 5% ownership will increase to over $100 million in roughly six months.
Last year, he joined the Ather cap table by purchasing a stake in Flipkart cofounder Sachin Bansal. At a value below the unicorn round, Kamath is thought to have paid about $40 million for the Ather stake. Another source with knowledge of the deal's specifics stated, "He is already sitting on big gains."
With investments in a number of early-, late-, and IPO-bound firms, Kamath has become a prominent player in India's digital economy. Among the companies in his portfolio are Bluestone and Subko Coffee.
Hero MotoCorp, the biggest shareholder in Ather with roughly a 37% interest, will be listed as a co-promoter and will not be selling any shares during the offer-for-sale (OFS) window. Another Flipkart cofounder, Binny Bansal, is selling off a portion of his investment in the EV manufacturer as part of the IPO. Other stockholders include GIC and Tiger Global.
Mileage
According to figures from Vahan, it concluded 2024 with just over 14% of the market, up from about 6% in April of previous year. As of Sunday, its market share in January was approximately sixteen percent.
In the meantime, Ola Electric's market share has decreased, particularly in December when it lost its leading position to TVS Motor and Bajaj Auto, two conventional automakers with EV products.
The first scooter in the family market, which Ola Electric has dominated, is the Rizta. The model will be produced at the Aurangabad plant of the Bengaluru-based company. The performance scooter market is served by Ather's flagship 450 series.
Gujarat is one of the markets where Ather is expanding the fastest, with its market share rising from 5% in July to 25% in December. The firm is growing its experience centers, adding more charging grids, and establishing Gold Service centers for servicing. It has also teamed with Amara Raja, a company that provides battery and charging solutions, for its new Aurangabad production facility.
In 2024, nine Indian businesses went public. The industry anticipates that at least twice as many will access public marketplaces this year. According to a venture investor with knowledge of the situation, "IPOs have become a fair alternative for many mid-stage startups to going for another private round of funding."
Due to a number of variables, Ola Electric, which had a fantastic launch on the stock exchanges, is currently trading below its issue price. On Friday, the share closed at Rs73.42 on the BSE.
