Ather Energy, the prominent electric scooter manufacturer, has converted into a public limited company, signaling its intentions to go public in the near future. The decision was approved at the company’s recent annual general meeting (AGM), where it was resolved to rename the firm from Ather Energy Private Limited to Ather Energy Limited, according to sources familiar with the matter.
The conversion to a public limited entity follows Ather’s plans to raise $75-90 million (approximately Rs 750 crore) in primary funding from both new and existing investors. This funding round, expected to be led by current investors, could potentially value the company between $850 million and $1 billion, as reported earlier.
Recently, Ather Energy experienced significant developments in its shareholder structure, with Flipkart co-founder Sachin Bansal divesting his remaining 7.5% stake in the company. This stake was acquired in part by Hero MotoCorp, now the largest shareholder holding approximately 40% of Ather’s shares, solidifying its position as a key investor.
Earlier in May, Ather raised Rs 286 crore ($34 million) through a funding round involving contributions from its founders and Stride Ventures, combining debt and equity investments to bolster its financial position.
Hero MotoCorp, in a recent filing, disclosed Ather’s turnover for FY24 at Rs 1,753 crore, marginally lower than its operating revenue of Rs 1,784 crore in FY23. No profit or loss figures were reported for FY24; however, Ather had posted a net loss of Rs 864 crore in FY23.
The transition to a public limited company marks a pivotal step for Ather Energy as it prepares to expand its market presence and further innovate in the electric vehicle sector, leveraging its established brand and technological advancements.