Bengaluru-based electric scooter manufacturer Ather Energy has adjusted its public listing strategy, reducing its fundraising target to ₹2,626 crore ($308.3 million) amid challenging market conditions.
The revised initial public offering (IPO), set for subscription between April 28 and 30, will see shares priced between ₹304 and ₹321 each, with anchor investors participating in a private placement on April 25.
The company now seeks a post-issue valuation of approximately ₹11,956 crore ($1.4 billion), a notable reduction from its earlier $2.4 billion ambition. Existing stakeholders, including co-founders Tarun Mehta and Swapnil Jain alongside institutional backers NIIF and Tiger Global, will collectively sell 11.05 million shares.
Hero MotoCorp, which holds a 37% stake, has opted against divesting any shares during this offering. Ather plans to allocate ₹927 crore toward establishing a new manufacturing facility in Maharashtra, ₹750 crore for research and development, and ₹300 crore for marketing efforts, while dedicating ₹40 crore to debt repayment.
Financial disclosures reveal a 28% revenue increase to ₹1,578.9 crore for the nine months ending December 2024, coupled with reduced losses of ₹577.9 crore compared to ₹776.4 crore year-on-year. Government data shows the company sold 126,353 electric scooters in 2024, securing a 10.7% market share.
However, this positions Ather fourth in India’s competitive electric two-wheeler sector, trailing market leader Ola Electric, which commands 34.1% of sales.
The listing follows Ola Electric’s turbulent market debut last year, where shares initially surged 20% before declining 42% to ₹53.02. Ather’s revised strategy coincides with foreign investors withdrawing over $33 billion from Indian equities since late 2023, according to National Securities Depository data. The company’s geographic sales concentration remains a concern, with 68% of deliveries occurring in southern states. Axis Capital, HSBC, and JM Financial are managing the offering, which is expected to list on May 6 if subscribed fully.
Founded in 2013 by IIT Madras graduates, Ather launched its first electric scooter in 2018 and currently offers models like the 450 series and the recently introduced family-oriented Rizta. The IPO’s success may hinge on investor appetite for electric vehicle stocks amidst growing competition from established players like TVS Motor and Bajaj Auto, who collectively control 25% of the market.