Ather Energy, an Indian electric vehicle manufacturer specializing in two-wheelers, has reduced its planned initial public offering by 18%, now aiming to raise 26.26 billion Indian rupees ($308.3 million). The company disclosed this adjustment in a revised draft prospectus filed recently, attributing the decision to current market conditions. The Bengaluru-based startup confirmed it is targeting a post-money valuation of $1.4 billion, a downward revision from its earlier goal of $1.5–2 billion in late 2024.
Existing shareholders will sell 11.1 million shares during the IPO, a significant reduction from the 22 million shares proposed in the previous filing. The bidding window for shares is scheduled to open on April 28 and close three days later, with anchor investors participating in a private placement on April 25. Key stakeholders, including co-founders Tarun Mehta and Swapnil Jain, along with NIIF and Tiger Global’s Internet Fund III, plan to divest portions of their holdings. Notably, Hero MotoCorp, which holds a 40% stake in Ather, will retain its shares and not participate in the offering.
Proceeds from the IPO will be allocated to several strategic initiatives. Approximately 9.27 billion rupees ($108.8 million) will fund a new manufacturing facility in Maharashtra, while 7.5 billion rupees ($88 million) will support research and development efforts. An additional 3 billion rupees ($35.2 million) is earmarked for marketing campaigns, and 400 million rupees ($4.7 million) will go toward debt repayment.
Ather reported a 21% year-over-year sales increase in 2024, selling 126,353 units and capturing a 10.7% market share in India’s electric two-wheeler segment. Since launching its first product in 2018, the company has grown steadily, generating 15.79 billion rupees ($185.4 million) in revenue during the first nine months of the current fiscal year. Net losses narrowed to 5.78 billion rupees ($67.8 million) from 7.76 billion rupees ($91.1 million) in the same period last year.
The EV startup faces competition from Ola Electric, which dominated the market with a 34.1% share in 2023. Ola’s 2024 IPO saw shares surge 20% on debut but have since declined by 42%, closing at 53.02 rupees recently. Ather’s revised valuation and IPO strategy reflect cautious optimism amid evolving market dynamics in India’s rapidly growing electric mobility sector.
