StopDownOpen the app

People · Mobility & Logistics

Ather Energy to file IPO prospectus, aiming to raise ₹2,626 crore

By ·

Date
Company
Ather Energy
What it does
electric two-wheeler manufacturer
Kind
People
Amount
₹3 crore
Based in
Bengaluru
Sector
Mobility & Logistics

What they do

Ather Energy is an electric two-wheeler manufacturer based in Bengaluru

What happened

The company is preparing to file its Draft Red Herring Prospectus (DRHP) for an initial public offering (IPO) expected to raise around ₹2,626 crore in fresh…

Why it matters

The IPO will include a mix of fresh issuance and an offer for sale by existing investors, including Tiger Global, Hero MotoCorp, and Flipkart co-founder…

The details

  • Ather Energy has approved a revised compensation structure for its co-founders, Tarun Mehta (CEO) and Swapnil Jain (CTO), effective August 1, 2025.
  • The founders will receive an annual remuneration of ₹3 crore each, consisting of ₹2.1 crore in fixed pay and ₹90 lakh in variable pay.
  • The company's board and shareholders have cleared a provision to increase this annual remuneration to up to ₹5 crore each in years when Ather reports inadequate or no profits.
  • Ather Energy is preparing to file its Draft Red Herring Prospectus (DRHP) for an initial public offering (IPO) expected to raise around ₹2,626 crore in fresh issue.
  • The IPO will include a mix of fresh issuance and an offer for sale by existing investors, including Tiger Global, Hero MotoCorp, and Flipkart co-founder Sachin Bansal.

The bigger picture

  • The revised compensation structure for Ather's founders aligns with Section 197 of the Companies Act, 2013, which governs managerial compensation in scenarios of inadequate or no profits.
  • For FY25, the founders will receive ₹2.784 crore each, slightly below the approved ceiling, indicating a cautious approach as the company navigates its public market transition.
  • This move comes as Ather prepares for its IPO, which is expected to raise ₹2,626 crore in fresh issue.

About the business

  • Ather Energy is an electric two-wheeler manufacturer based in Bengaluru, India.
  • The company is at the forefront of the technological disruption in the automobile industry, focusing on electric vehicles for urban commute.
  • Ather Energy aims to revolutionize the commute experience through intelligent vehicles and seamless integration of devices.
  • The company's website highlights its commitment to innovation and efficiency in electric mobility solutions.
  • Ather Energy's leadership includes Tarun Mehta (CEO), Swapnil Jain (CTO), and other key executives involved in product development, marketing, finance, and manufacturing.

What happens next

  • Ather Energy is expected to file its Draft Red Herring Prospectus (DRHP) for an initial public offering (IPO) in the near future.
  • The IPO is expected to raise ₹2,626 crore in fresh issue.

The deal

Type
ipo

Investors

  • Tiger Global (investor) — A venture capital firm based in India and the United States.
  • Hero MotoCorp (investor) — A leading motorcycle manufacturer in India.
  • Sachin Bansal (investor) — Co-founder of Flipkart, one of India's largest e-commerce platforms.

Founders

  • Tarun Mehta, CEO and co-founder
  • Swapnil Jain, CTO and co-founder

Read it as a card in the app

More on Ather Energy

Everything on Ather Energy →

Same day

All startup news on 24 April 2025 →