Electric two-wheeler Ather Energy files IPO papers with Sebi; eyes Rs 3,100-cr via fresh issue

Electric two-wheeler maker Ar Energy on Monday filed preliminary papers with capital markets regulator Sebi to raise funds through an Initial Public Offering (IPO).

proposed IPO is a combination of a fresh issue of equity shares worth Rs 3,100 crore and an Offer For Sale (OFS) of 2.2 crore equity shares by promoters and investors shareholders, according to Draft Red Herring Prospectus (DRHP).

Those selling shares in OFS are -- Calium Investment Pte Ltd, National Investment and Infrastructure Fund II,  3State Ventures Pte Ltd, IITM Incubation Cell and IITMS Rural Technology and Business Incubator among ors.

Proceeds from fresh issue will be used for capital expenditure to establish an electric two-wheeler factory in Maharashtra , investment in research and development, marketing initiatives, repayment of loan and for general corporate purposes.

This will be second electric two-wheeler company looking to go public after Ola Electric Mobility floated its Rs 6,145-crore IPO in August. This was also first issue by an automaker in country in more than 20 years.

Ola Electric's IPO h a fresh issue of up to Rs 5,500 crore and an OFS of up to 8,49,41,997 equity shares.

Ar Energy is a pure-play EV company that designs all its products ground up in India. Since its inception in 2013, company has focused on product and technology development in India in order to build an E2W ecosystem.

At present, electric two-wheeler maker's portfolio consists of two product lines -- Ar 450 and Ar Rizta -- comprising a total of seven variants. Its E2Ws are complemented by a product ecosystem, which involves charging infrastructure, accessories and Arstack.

Axis Capital, HSBC Securities and Capital Markets (India) Pvt Ltd, JM Financial,  and Nomura Financial visory Securities (India) Pvt Ltd are book-running le managers to issue.