Electric two-wheeler maker Ather Energy has filed its draft red herring prospectus (DRHP), which proposes a fresh issue of shares worth ₹3,100 crore through its initial public offering (IPO).

The Bengaluru-based company’s IPO combines a fresh issue and an offer for sale of up to 2.2 crore equity shares with a face value of ₹1 each.

Caladium Investments, National Investment and Infrastructure Fund II, Internet Fund III, 3State Ventures and cofounders Tarun Mehta and Swapnil Jain are among the investors who will offload their shares via OFS.

The proceeds from the IPO will be used to set up the company’s electric two-wheeler factory in Chhatrapati Sambhajinagar, Maharashtra, to manufacture and assemble electric two-wheelers and batteries. The company plans to commence production in a phased manner at the facility by May 2026 with a targeted capacity of 0.5 Mn E2Ws.

Part of the IPO proceeds will also be used for research and development (R&D), marketing initiatives, infrastructure, production initiatives, and other general corporate purposes.

Ather joined the unicorn club recently after raising ₹600 crore ($71 Mn) from its existing investor, the National Investment and Infrastructure Fund (NIIF), at a post-money valuation of $1.3 billion.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy is the fourth biggest player in the Indian market, behind Ola Electric, TVS Motor, and Bajaj Auto.

As per its DRHP, Ather Energy widened its consolidated net loss to ₹1,059.7 crore in the financial year 2023-24 (FY24) from ₹864.5 crore in the preceding fiscal year, while the revenue from operations stood at ₹1,753.8 crore.

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