Indian EV maker Ather Energy has reduced the size of its initial public offering (IPO) by 18%, now aiming to raise ₹26.26 billion ($308.3 million), as per a revised draft prospectus filed on Tuesday. The move reflects shifting market conditions, which also influenced the startup’s decision to target a lower post-money valuation of $1.4 billion, down from last year’s projected $1.5–$2 billion range.
Lower Share Sale, New Focus for Funds
In the updated IPO structure, existing shareholders will now offload 11.1 million shares, down from the previously planned 22 million. Co-founders Tarun Mehta and Swapnil Jain, along with investors such as NIIF and Tiger Global, are among those selling shares. Strategic investor Hero MotoCorp, which holds a 40%+ stake, will retain its holdings.
IPO bidding opens April 28 and runs for three days, with anchor investors joining a private placement on April 25.
Ather plans to allocate the IPO proceeds toward key expansion and operational initiatives:
- ₹9.27 billion ($108.8M) for a new electric two-wheeler plant in Maharashtra
- ₹7.5 billion ($88M) for R&D
- ₹3 billion ($35.2M) for marketing
- ₹400 million ($4.7M) to repay borrowings
Ather Energy Growth, Performance, and Market Context
Founded in 2013 and launching its first e-scooter in 2018, Ather has experienced steady growth. In 2024, it saw a 21% increase in unit sales, delivering 126,353 vehicles and securing a 10.7% market share, according to CRISIL.
Financially, the company earned ₹15.79 billion ($185.4M) in revenue over the nine months ending December, while trimming its net loss to ₹5.78 billion ($67.8M) from ₹7.76 billion ($91.1M) a year prior.
Ather’s IPO comes amid broader market scrutiny following rival Ola Electric’s turbulent listing. Ola, which held 34.1% market share, had a blockbuster IPO with a 20% surge but has since seen its stock drop 42%, closing at ₹53.02 this week.
As Ather prepares for its market debut, the startup remains focused on expansion and product innovation, betting that EV demand in India will continue to climb.
