Upcoming IPO: Ather Energy cuts IPO size, valuation lowered to ₹12,800 crore: Report

Upcoming IPO: Ather Energy is expected to reduce the size of its IPO to between ₹2,900 crore and ₹3,200 crore, down from the initial target range of up to ₹3,500 crore to ₹3,700 crore, said CNBC-TV18 in its news report citing its sources.

The electric two-wheeler manufacturer is now aiming for a post-money valuation of approximately ₹12,800 crore, which is lower than the previous target of ₹14,000 crore. This reduction in the issue size is attributed to volatile market conditions and a lack of investor enthusiasm, said CNBC-TV18 in its report.

IPO details

Ather Energy IPO will feature both a fresh issuance of shares and an offer-for-sale (OFS) portion, with founders and some early investors likely to reduce part of their stakes, said CNBC-TV18 in its report. Hero MotoCorp, which holds more than 37% in Ather, is not anticipated to sell any shares during the IPO.

This marks the second time Ather has reduced its valuation prior to its upcoming public offering. Previously, the company had targeted a valuation range between ₹17,000 crore and ₹20,000 crore, according to the news report from CNBC-TV18.

Ather currently has no intentions of canceling its IPO, as reported by CNBC-TV18. Following the receipt of regulatory approval to go public in December of the previous year, Ather originally aimed for a listing at the beginning of 2025, but the timeline was pushed back to the first week of April, and sources are now suggesting that further delays of an additional month may occur.

Ather Energy, an electric two-wheeler manufacturer based in Bengaluru, India, according to reports. Founded in 2013 by Tarun Mehta and Swapnil Jain, the company produces electric scooters such as the Ather 450 Apex, Ather 450S, Ather 450X, Ather 450X Pro, and Ather Rizta.

Its electric vehicle manufacturing plants are located in Whitefield, Bangalore, and Hosur in Tamil Nadu. Currently, Ather Energy ranks as India's fourth-largest manufacturer of electric two-wheelers, following Ola Electric, TVS Motor Company, and Bajaj Auto.

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