EV maker Ather Energy might launch its IPO this April
What's the story
Ather Energy, one of the leading names in the electric two-wheeler segment in India, is inching closer to its IPO. The company has converted its outstanding compulsory convertible preference shares (CCPS) into equity. This move comes as part of Ather's preparations for an IPO, which according to PTI could be launched in April.
Resolution passed
Board approves conversion of CCPS
Yesterday, Ather Energy's board passed a resolution to convert over 1.73 crore outstanding CCPS into 24.04 crore fully paid-up equity shares, a Registrar of Companies (RoC) filing accessed by PTI revealed. The shares, with a face value of ₹1, will be on par with existing equity shares. This conversion comprises multiple series issued over time such as Series Seed (One to Four), Series A-G, Bonus CCPS, and various E classes (E, E1, E2).
IPO details
Ather Energy's IPO: Fresh issue and offer-for-sale
As per the Draft Red Herring Prospectus (DRHP), Ather Energy's upcoming IPO will include a fresh issue of equity stocks worth ₹3,100 crore and an offer-for-sale of 2.2 crore equity shares by promoters and investors. This makes Ather Energy the second electric two-wheeler firm to go public after Ola Electric's ₹6,145 crore IPO in August last year. The company's decision to convert CCPS into equity is a crucial step toward filing the Red Herring Prospectus (RHP) under SEBI's regulations.
Growth plans
Expansion of R&D capabilities
Apart from its IPO plans, Ather is also looking to expand its R&D capabilities. The firm recently announced the expansion of its R&D and testing facilities at The Juggernaut, its product testing and validation center in Bengaluru's Begur. This development highlights Ather Energy's commitment to innovation and growth in the electric two-wheeler space.