New Delhi: Electric vehicle (EV) company Ather Energy, aiming to raise more than INR 3,100 crore via its initial public offering (IPO), saw its losses widen 22 Percent to INR 1,060 crore in FY24, as its operating revenue declined 1.5 Percent to INR 1,753.8 crore (year-on-year) in the last fiscal.
The electric two-wheeler firm spent INR 2,674.2 crore in FY24. As per its draft red herring prospectus (DRHP) filed with the markets regulator SEBI, the revenue decline was due to reduction in the subsidy provided by the government.
“As a result of the reduced subsidy, our customers faced an increase in the retail price of our E2Ws ranging from INR 20,434 to INR 30,285. This contributed to a slight decrease in our revenue from operations,” said the company.
Ather Energy had clocked 335 Percent growth YoY in its operating revenue to INR 1,780.9 crore in FY23.
In FY24, the EV firm spent the largest portion of its total expenses on the cost of materials consumed, which increased 2.7 Percent YoY to INR 1,579.2 crore.
The company’s total employee benefit expenses went up 10.3 Percent to INR 369.2 crore in FY24, from INR 334.8 Cr in FY23.
As per Ather’s DRHP, its IPO will comprise INR 3,100 crore worth of fresh issue and an OFS (offer for sale) component of 2.2 crore equity shares. The funds raised will be used to establish a new electric two-wheeler manufacturing facility, along with boosting research and development.
Last month, Ather Energy secured USD 71 million led by the National Investment and Infrastructure Fund (NIIF), taking its valuation to USD 1.3 billion and making it a new unicorn. With this, the company managed to raise over USD 125 million in the last three-four months.
