India’s Ather Energy saw its stock go up by 2% before the market officially opened on Tuesday, as investors showed confidence in the company’s strong focus on research and development for electric scooters.
The stock started trading at 328 rupees on the National Stock Exchange of India, which is more than its offer price of 321 rupees.
The company raised $352 million through its initial public offering (IPO), making it the third-largest in India this year. Big investors like the Abu Dhabi Investment Authority and Temasek played a major role in making it successful.
Some current investors, like GIC and Tiger Global, sold their shares during the IPO, but Ather’s biggest shareholder, Hero MotoCorp, chose to keep its shares.
Ather, which was one of the first to sell electric scooters in India in 2018, made its IPO smaller by about 15% and lowered the value it was aiming for by 44%.
The company’s founder calls their high-tech scooters the “Apple of electric two-wheelers.” Ather is hoping that its new scooter models will help it start making a profit and catch up with competitors like Ola Electric, TVS Motor, and Bajaj Auto.
The Bengaluru-based company will spend most of the money from the IPO to build a third factory and work on research and development (R&D).
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