15th, March 2025
Ather Electric, a Bengaluru-based company, has lowered the value of its initial public offering (IPO) from 17,000 crores to 14,000 crores.
Hero Moto Corp. is supporting Ather, which has resubmitted its IPO paperwork to the Securities and Exchange Board of India (SEBI) with the goal of raising between 3,700 and 4,000 crores in order to be listed by the end of March.
According to market analysts, this valuation reduction is consistent with the current trends in India’s electric vehicle (EV) two-wheeler market, which is showing signs of slowing down, as indicated by the Federation of Automobile Dealers Associations’ (FADA) February sales decline of 8% year over year.
While Ola Electric, its rival, saw a more notable increase of 52% over the same period, Ather saw a 20% year-over-year growth in contrast to the market downturn.
The company’s founders and other investors will have the opportunity to exit the business through the impending IPO. The sale offer is anticipated to result in the reduction of holdings by prominent stakeholders, such as Tiger Global, Caladium Investments, the National Investment and Infrastructure Fund (NIIF), Binny Bansal’s 3 State Ventures, and co-founders Tarun Mehta and Swapnil Jain.
Hero Moto Corp, which owns more than 37% of Ather, has decided not to take part in the IPO and will continue to invest its entire capital in the business.
In order to expand its operations and improve its internal business procedures, Ather Energy has laid out a strategic plan to use the money raised from the IPO. The company plans to use these funds to launch marketing campaigns to increase brand awareness and boost sales, as well as to advance research and development efforts with an emphasis on better battery technology and vehicle software.
Given that Ola Electric’s listing last year attracted a lot of attention but has since encountered difficulties, with its stock price falling by 65% from its peak valuation of $7.7 billion, the IPO will be closely watched. Additionally, Ather has promised to build a new facility in Sambhajinagar, Maharashtra, to manufacture electric two-wheelers.
