Electric two-wheeler manufacturer Ather Energy Ltd has taken a crucial step towards its much-anticipated initial public offering (IPO) by converting its outstanding Compulsory Convertible Preference Shares (CCPS) into equity.
According to merchant banking sources, this move is part of the company’s preparation for the IPO.
IPO Expected in April 2025
Ather Energy’s IPO is expected to launch in April 2025. According to documents filed with the Registrar of Companies (ROC) and accessed by PTI-Bhasha, the company’s board of directors passed a resolution on March 8, 2025, approving the conversion of over 1.73 crore outstanding CCPS into 24.04 crore fully paid-up equity shares.
These shares, with a face value of Rs 1, will be equal to the existing equity shares.
Regulatory Compliance and IPO Readiness
As per the Securities and Exchange Board of India’s (SEBI) Capital Issues and Disclosure Requirements (ICDR) Regulations, all CCPS must be converted into equity before filing the draft offer documents (RHP).
This regulatory move highlights Ather Energy’s swift progress towards its IPO, which is expected to be one of the first IPOs of FY 2025-26.
Fundraising Plans and IPO Structure
Ather Energy had filed draft documents in September last year, outlining plans to raise funds for setting up an electric two-wheeler plant in Maharashtra and reducing debt. According to the draft documents, the IPO will consist of:
A fresh issue of equity shares worth Rs 3,100 crore
An Offer for Sale (OFS) of 2.2 crore shares by promoters and investors
Following Ola Electric’s Footsteps
Ather Energy will be the second electric two-wheeler company to launch a public issue after Ola Electric Mobility.
Ola Electric had launched its Rs 6,145 crore IPO in August last year, which included a fresh issue of up to Rs 5,500 crore and an OFS of 8.49 crore equity shares.
With Ather Energy gearing up for its IPO, investors and market analysts will be closely watching its performance in the lead-up to the public listing.
