Bengaluru-based electric two-wheeler manufacturer Ather Energy Ltd has taken a crucial step toward its initial public offering (IPO) by converting its outstanding compulsory convertible preference shares (CCPS) into equity. This development aligns with the company’s preparation for its planned IPO, expected to take place in April, according to merchant banking sources.
As per a recent Registrar of Companies (RoC) filing, Ather’s board approved the conversion of over 1.73 crore CCPS into 24.04 crore fully paid-up equity shares on March 8, 2025. These shares, each carrying a face value of ₹1, will hold the same rights as the existing equity shares. The CCPS conversion includes multiple series, such as Series Seed (One to Four), Series A to G, along with various bonus and additional series.
Under SEBI regulations, companies must convert all CCPS into equity before filing the Red Herring Prospectus (RHP), signaling that Ather is rapidly advancing toward its public listing. The company had earlier submitted draft papers in September 2024 to raise funds for expanding its manufacturing unit in Maharashtra and reducing debt.
The IPO will comprise a fresh equity issue worth ₹3,100 crore and an offer-for-sale (OFS) of 2.2 crore shares by existing promoters and investors. Ather’s listing will follow Ola Electric Mobility, which raised ₹6,145 crore in its IPO last year.
In parallel, Ather is also strengthening its research and development capabilities, recently expanding its testing and validation center, The Juggernaut, in Bengaluru’s Begur.
