Electric two-wheeler maker Ather Energy filed for an IPO a month after competitor Ola made its debut on the stock exchanges.

What Happened: The Bengaluru-based firm will sell new shares worth ₹3,100 crore, the company said in its draft red herring prospectus. The IPO will include an offer for sale of 2.2 crore shares by investors and promoters.

Promoters Tarun Sanjay Mehta and Swapnil Babanlal Jain will each offload 10 lakh equity shares in the company. Caladium Investment, National Investment and Infrastructure Fund II and Internet Fund III are among the corporate shareholders looking to sell their stakes.

Indian bike-maker Hero MotoCorp reportedly holds a 37.2% stake in Ather and will not sell its shares in the upcoming IPO.

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This comes as Ather’s competitor Ola Electric completed a month since its debut at the bourses on Monday.

The proceeds from the IPO will reportedly be used for capital expenditures to fund ongoing research and development efforts. The company is also planning to set up a plant in Maharashtra, a state with high electric two-wheeler adoption and a robust automotive supplier network. Currently, the company operates a manufacturing facility in Hosur, Tamil Nadu.

Axis Capital, JM Financial, Nomura and HSBC have been designated as the book-running lead managers for the offering, with Link Intime India serving as the official registrar for the issue.

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