Ather Energy IPO: Electric EV maker converts preference shares into equity; 7 key things to know

Ather Energy IPO: In a key step towards its initial public offering (IPO), electric two-wheeler manufacturer Ather Energy has converted its outstanding compulsory convertible preference shares (CCPS) into equity.

According to a Registrar of Companies (RoC) filing, the company's board gave the green light on March 8 to a resolution approving the conversion of more than 1.73 crore outstanding CCPS to 24.04 crore fully paid-up equity shares.

The shares, with ₹1 face value, will rank equally with the existing equity shares.

According to SEBI ICDR (Issue of Capital and Disclosure Requirements) Regulations, all CCPS are needed to be converted into equity before filing the Red Herring Prospectus (RHP).

Ather Energy IPO: Key things to know

• As per DRHP, Ather Energy's IPO will be a mix of a fresh issue worth ₹3,100 crore and an offer-for-sale (OFS) component of 2.2 crore shares.
• The money raised will be used for capital expenditures to set up an electric two-wheeler factory in Maharashtra, debt repayment, investment in R&D, marketing initiatives, and corporate general purposes.
• In addition to its IPO plans, the EV maker is expanding its research and development (R&D) capabilities.
• Axis Capital, HSBC Securities and Capital Markets, JM Financial and Nomura Finance Advisory are the issue's book-running lead managers, while Link Intime India is the registrar.
• The company's revenue from operations declined 1.52% to ₹1,753.8 crore in the financial year 2023-24, compared to ₹1,780.9 crore in the previous fiscal.
• It reported a net loss of ₹1,059.7 crore in FY24, as against ₹864.5 crore in FY23.
• Ather Energy manufactures electric two-wheelers, battery packs and charging infrastructure.