Ather Energy Likely to Cut IPO Size by $50 Million Amid Market Uncertainty

Muskaan Kapoor

09 Apr 2025 — 2 min read

Ather Energy Likely to Cut IPO Size by $50 Million Amid Market Uncertainty

Ather Energy, one of India’s top electric two-wheeler manufacturers, is likely to reduce the size of its upcoming Initial Public Offering (IPO) by $50 million. According to multiple media reports, the move comes in response to ongoing market instability and weak investor sentiment in the tech and startup space.

Originally, Ather was aiming to raise around $400 million through the public issue. Now, the target appears to have been revised to approximately $350 million. The company is reportedly taking a cautious approach to ensure strong demand and a balanced valuation at the time of listing.

Valuation Expectations Also Revised

As per a report by CNBC-TV18 citing sources familiar with the matter, Ather Energy is also adjusting its valuation target. The Bengaluru-based EV maker is now believed to be aiming for a post-money valuation of around INR 12,800 crore, lower than the earlier goal of INR 14,000 crore.

The company is said to be in ongoing discussions with its advisors and may soon file updated draft papers with the Securities and Exchange Board of India (SEBI). These changes show the company’s efforts to align with current market trends and maintain investor confidence.

Strong Backing and Continued Growth

Despite the revised IPO size, Ather remains a strong player in India’s growing EV sector. Founded in 2013, the company has built a loyal customer base with its smart electric scooters, including the Ather 450 series.

Ather is backed by Hero MotoCorp, which holds around a 34.3% stake in the startup as of September 2024, according to data from Tracxn. This strategic partnership has helped Ather expand its distribution and gain a foothold in India's competitive two-wheeler market.

The company posted a revenue of over INR 1,800 crore in FY24 and sold nearly 1.2 lakh electric scooters. It continues to compete with Ola Electric, TVS, and other emerging EV brands.

Final Thoughts

Ather Energy’s IPO remains one of the most awaited in India’s EV space. While the company is revising its offer size and valuation, it still holds strong long-term potential. With credible backing, a growing product portfolio, and rising EV adoption in India, the revised IPO may still attract considerable investor interest.