India’s EV pioneer Ather Energy has trimmed the size of its upcoming initial public offering, setting its sights on a post-money valuation of $1.4 billion, down from the previously anticipated $2 billion.
In a revised draft prospectus filed Tuesday, the Bengaluru-based electric two-wheeler manufacturer confirmed plans to raise ₹26.26 billion ($308.3 million)—a reduction of about 18% from the earlier filing. This recalibration, the company says, reflects shifting market dynamics.
IPO Stake Sales: Who’s In and Who’s Out
The new filing outlines that existing shareholders will offload 11.1 million shares, halving the previously proposed 22 million. Major stakeholders like Ather’s co-founders Tarun Mehta and Swapnil Jain, along with institutional investors Tiger Global and National Investment and Infrastructure Fund (NIIF), are set to participate in the sale.
However, Hero MotoCorp, which owns a significant 40%+ stake in Ather, has opted to retain its holdings, signaling continued long-term confidence in the company.
Public bidding is set to begin on April 28 for a three-day window, with anchor investors joining through a private placement on April 25.
Proceeds to Power New Plant, R&D, and Marketing
Ather plans to deploy the IPO proceeds across four key areas:
- ₹9.27 billion ($108.8M): For a new EV manufacturing plant in Maharashtra
- ₹7.5 billion ($88M): To accelerate research and development
- ₹3 billion ($35.2M): For marketing and brand expansion
- ₹400 million ($4.7M): To repay existing borrowings
These investments are expected to strengthen Ather’s position in India’s competitive two-wheeler EV market and fuel its next phase of growth.
Strong Sales Growth, But Profit Still Elusive
Despite trimming its IPO target, Ather continues to grow. According to Indian government data, it sold 126,353 electric scooters in 2024, marking a 21% year-on-year increase and securing a 10.7% market share.
Financially, the startup generated ₹15.79 billion ($185.4 million) in revenue for the nine months ending December 2024. Net losses narrowed to ₹5.78 billion ($67.8 million), down from the previous year’s ₹7.76 billion ($91.1 million)—a sign of improving cost efficiency.
Founded in 2013, Ather entered the market with its first e-scooter in 2018 and has since carved out a niche with premium offerings and robust tech integrations.
Ola Electric Looms Large
Ather’s path to the public market comes in the wake of Ola Electric’s high-profile IPO, which briefly surged 20% on debut—India’s strongest listing in two years. Yet since its initial pop, Ola’s stock has tumbled nearly 42%, closing at ₹53.02 this Tuesday.
While Ola continues to dominate with a 34.1% market share, Ather’s focus on performance, innovation, and premium positioning could help it punch above its weight—especially if it executes well post-IPO.
