Electric two-wheeler manufacturer Ather Energy has proposed raising ₹31 billion (~₹369.4 million) through an initial public offering (IPO).

In a draft red herring prospectus filed with market regulator Securities Exchange Board of India, the company said the IPO includes a fresh issue of shares worth ₹31 billion (~$369.4 million) and an offer for sale of ₹22 million (~$262,022) from investors and promotors.

Under the offering, Tarun Sanjay Mehta and Swapnil Babanlal Jain are offering shares worth ₹1 million (~$11,911.83).

Caladium Investment, National Investment and Infrastructure Fund II, Internet Fund III, 3State Ventures, and IITM Incubation Cell are among the corporates selling shares.

The funds from the IPO will be used to establish a new electric two-wheeler manufacturing facility in Maharashtra and support ongoing research and development efforts.

Axis Capital and HSBC Securities, HSBC Securities and Capital Markets, JM Financial, and Nomura Financial Advisory and Securities are the book-running lead managers for the offering.

The company is backed by Indian bike maker Hero MotoCorp, which recently increased its stakes by 2.2% by purchasing shares worth ₹1.24 billion (~$14.85 million). Before this investment, Hero MotoCorp held a 33.1% share in Ather.

Ather Energy raised $128 million from the National Investment and Infrastructure Fund’s (NIIF) Strategic Opportunities Fund (SOF) and Hero MotoCorp in a Series E funding round.

The IPO comes at a time when electric vehicle (EV) sales in India reached a record 486,669 units in the first quarter of 2024, a jump of over 40% against the 347,676 units sold in the same period of 2023. Electric two-wheelers accounted for nearly 62% (301,010) of total EVs sold during the quarter.

The EV market has consistently exceeded the 100,000-unit mark each month during the first quarter, with March witnessing the highest-ever monthly sales of 204,337 units.