Ather Energy, the Hero MotoCorp-backed electric two-wheeler major and a key competitor of OLA Electric filed its draft red herring prospectus (DRHP) with the markets watchdog, SEBI, to raise funds. The company is a pure-play EV company similar to OLA Electric.
Fresh issue and OFS
The Bengaluru-based company EV company will be raising funds via a combination of fresh capital and the sale of secondary shares. The company will raise Rs 3,100 crore in fresh capital and sell 22 million secondary shares of promoters and other selling shareholders.
Lead Book Running Managers
The lead book runners of the issue are Axis Capital, HSBC Securities and Capital Markets (India) Pvt Ltd, JM Financial, and Nomura Financial Advisory and Securities (India).
Promoters Selling Stake
The promoter-selling shareholders include Tarun Sanjay Mehta who may sell up to 1 million equity shares and Swapnil Babanlal Jain up to 1 million equity shares.
Other Selling Shareholders
Caladium Investment Pte Ltd will sell up to 10.52 million equity shares, National Investment and Infrastructure Fund II – up to 4.61 million equity shares, Internet Fund III Pte. Ltd. – up to 4 million equity shares, 3State Ventures Pte. Ltd. – up to 0.48 million equity shares, IITM (IIT Madras) Incubation Cell – up to 0.31 million equity shares, and IITMS Rural Technology and Business Incubator – up to 42,000 equity shares. Meanwhile, there are two individual selling shareholders as well.
Objective behind IPO
According to the company, the net proceeds will be utilised for funding capital expenditure requirements for the establishment of an E2W factory in Maharashtra (Rs 927.2 crores); investment in research and development (Rs 750 crores); payment in full or part, of certain borrowings availed by the company (Rs 378.2 crores); expenditure towards marketing initiatives (Rs 300 crores); and other general corporate purposes.