Ather Energy Rewards Workforce with New Equity Allotment
Ather Energy, India’s leading electric vehicle (EV) manufacturer and a prominent “unicorn” in the sustainable mobility sector, has officially approved the allotment of 429,212 equity shares to its employees.
This move, part of the company’s Employee Stock Option Plan (ESOP), comes at a critical juncture as the company accelerates its preparations for a high-profile Initial Public Offering (IPO) expected in 2025.
The allotment was confirmed through recent regulatory filings with the Registrar of Companies (RoC).
Ather Energy launched this ESOP initiative to reward long-term employees and attract top-tier talent as it scales its manufacturing and retail footprint across India.
Strategic Timing Ahead of Public Listing
The decision to expand the ESOP pool is a calculated move to align employee interests with the company’s valuation goals before it hits the public markets.
Ather Energy recently filed its Draft Red Herring Prospectus (DRHP) with SEBI.
The filing aims to raise approximately ₹3,100 crore through a fresh issue of shares alongside an “Offer for Sale” component.
By allotting these shares now, Ather ensures its workforce shares in the wealth creation typically associated with a successful IPO.
This grant specifically recognizes the engineers, designers, and operational staff who built the 450 Series and the newer Rizta family scooter.
Ather Energy Financial Backing and Valuation Milestones
This ESOP allotment follows a period of intense fundraising and valuation growth for the Bengaluru-based startup.
In mid-2024, Ather secured $71 million in funding led by the National Investment and Infrastructure Fund (NIIF).
This investment officially propelled the company to “unicorn” status with a valuation exceeding $1.3 billion.
The company’s cap table remains one of the strongest in the Indian EV space, featuring significant backing from:
- Hero MotoCorp: The world’s largest two-wheeler manufacturer remains a key strategic investor.
- GIC (Singapore): Providing sovereign wealth stability.
- Tiger Global & Flipkart Founders: Early backers who have seen the company grow from a garage project to a multi-factory operation.
Manufacturing Expansion and the “Rizta” Factor
Ather’s push for employee equity is matched by its physical expansion.
The company recently commenced production at its second manufacturing facility in Aurangabad, Maharashtra.
Ather Energy launched production at its second manufacturing site in Aurangabad, Maharashtra, to significantly increase its annual capacity and satisfy surging demand.
The recent launch of the Ather Rizta, the company’s first “family” oriented electric scooter, has been a major catalyst for growth.
Unlike the performance-focused 450X, the Rizta targets the mass market, directly competing with legacy petrol-driven scooters.
This product diversification is central to the “equity story” Ather is presenting to prospective IPO investors.
Note: We are also on WhatsApp, LinkedIn, and YouTube to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, YouTube – Click Here, and LinkedIn– Click Here.