Ather Energy, an electric two-wheeler manufacturer, submitted preliminary paperwork for its initial public offering (IPO) with capital markets regulator the Securities and Exchange Board of India (SEBI) on Monday. This comes just weeks after its primary rival, Ola Electric, made a successful market debut.

On September 6, ET reported on Ather’s planned IPO.

Here are important things to know:

  • According to the draft red herring prospectus (DRHP), the proposed IPO consists of a fresh issue of equity shares worth Rs 3,100 crore and an offer for sale (OFS) of 2.2 crore equity shares by promoters, investors, and shareholders.
  • Tarun Sanjay Mehta, co-founder and CEO, will sell up to one million shares, or ten lakh. Hero MotoCorp, which owns 37.2% of Ather, would not sell shares in the IPO.
  • According to the draft papers, the company will utilise the proceeds from the new offering to cover capital expenditures for the establishment of an electric two-wheeler factory in Maharashtra, research and development, marketing initiatives, loan repayment, and general corporate reasons.
  • Ather Energy is a pure-play electric vehicle startup that designs all of its products in India. The electric two-wheeler manufacturer, which debuted in 2013, now has a portfolio of two product lines, the Ather 450 and the Ather Rizta, totalling seven versions. Its E2Ws are supported by a product ecosystem that includes charging infrastructure, accessories, and the Atherstack.
  • Ather is India’s fourth-largest electric two-wheeler manufacturer by volume, after only Ola Electric, TVS Motor, and Bajaj Auto. According to official database Vahan, the company sold 10,830 e-scooters last month, a 51% increase over the previous year, for a market share of 12.2%.
  • Swapnil Jain, Mehta’s cofounder, will also sell a portion of his share in the IPO.
  • Tiger Global, GIC, and Binny Bansal’s Three State Ventures will all sell their shares during the OFS window.
  • The company became a unicorn last month after receiving $71 million in capital from NIIF, and it is now valued at $1.3 billion.