Ather Energy Cuts IPO Size and Valuation Amid Investor Caution: Reports

Ather Energy, the electric two-wheeler maker, is once again revising its Initial Public Offering (IPO) expectations. As per news article of CNBC –TV18, the company is now targeting a post-money valuation of approximately ₹12,800 crore. This marks a decrease from its earlier valuation goal of ₹14,000 crore.

As a result of the lowered valuation, Ather’s IPO size is also expected to be scaled back. The company is now aiming for an IPO worth between ₹2,900 crore and ₹3,200 crore ($350 million to $375 million), compared to the previous target range of ₹3,500 crore to ₹3,700 crore ($400 million).

Why Aether IPO Lowering Size?

The decision to downsize the IPO is largely driven by the current market conditions, which have been unpredictable, and a general sense of muted investor sentiment, according to sources familiar with the matter.

The revised IPO will consist of a combination of a fresh issue of shares and an offer-for-sale (OFS) component. In the offer-for-sale portion, promoters and select early investors are expected to dilute a part of their holdings. However, Hero MotoCorp, which holds a substantial 37% stake in Ather Energy, is not expected to sell any shares during the IPO.

This adjustment to Ather’s valuation marks the second time the company has lowered its IPO target. Initially, Ather had aimed for a valuation between ₹17,000 crore and ₹20,000 crore.

Ather Energy had secured regulatory approval to go public in December of the previous year and had planned to launch its IPO at the beginning of 2025. However, due to delays, the issue was postponed to early April, and sources now suggest that the public offering could face yet another delay, possibly by a month.

Despite the changes and delays, Ather Energy has no plans to withdraw its IPO, as per news reports.

Also Read: Ather Energy IPO: A Comparison with Ola Electric, Hero, TVS, and Bajaj Auto

Conclusion

Ather Energy’s IPO journey has faced several revisions, with the latest adjustment reflecting the challenges posed by an uncertain market. Nonetheless, the company remains committed to going public and has indicated that it is determined to follow through with its IPO plans despite these setbacks.

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