Ather Energy Slashes IPO Size, Valuation Now Pegged at ₹12,800 Crore: Report

Ather Energy, the Bengaluru-based electric two-wheeler manufacturer, has once again revised its IPO expectations downward. According to sources quoted by CNBC-TV18, the company is now aiming for a post-money valuation of approximately ₹12,800 crore. This marks a significant drop from its previous target of ₹14,000 crore and is notably lower than its initial valuation range of ₹17,000 crore to ₹20,000 crore.

IPO Size Cut to ₹2,900–₹3,200 Crore

In line with the lowered valuation, Ather is also expected to reduce the size of its initial public offering. The revised IPO size is estimated to be between ₹2,900 crore and ₹3,200 crore (equivalent to $350–$375 million). This is down from the earlier range of ₹3,500 crore to ₹3,700 crore (or $400–$450 million). The downsizing reflects the company’s efforts to navigate volatile market conditions and tepid investor sentiment.

Mixed Offer Structure: Fresh Issue and OFS

The upcoming IPO is set to feature a combination of a fresh issue of shares and an offer-for-sale (OFS) component. Promoters and certain early investors are expected to dilute their holdings as part of the OFS. However, Hero MotoCorp—which holds over a 37% stake in Ather Energy—is unlikely to participate in the share sale, according to sources.

Second Time Ather Cuts Valuation Ahead of IPO

This marks the second time Ather has adjusted its valuation downward ahead of its stock market debut. Initially, the company had ambitious plans to list at a valuation between ₹17,000 crore and ₹20,000 crore, but the continuous shift in market dynamics has prompted multiple revisions.

Timeline of Ather’s IPO Journey

Ather Energy received regulatory approval for its IPO in December 2024. The company had initially planned to go public in early 2025. However, the listing was pushed to the first week of April. Now, with fresh reports suggesting another delay, the IPO could be postponed by at least a month. Despite the uncertainties, sources have confirmed that Ather has no intention to cancel or withdraw the public issue.

Reasons Behind the Valuation Adjustment

Market analysts cite multiple reasons behind the lowered valuation and IPO size. Chief among them are the prevailing choppy equity markets and muted investor appetite for new listings—especially in the EV segment. The global slowdown in tech IPOs, along with tighter liquidity conditions, has led several Indian startups and unicorns to adopt a cautious approach toward fundraising.

Strategic Importance of IPO for Ather

Ather’s IPO is a pivotal moment for the company as it seeks to expand its market footprint, invest in R&D, and enhance its production capabilities. The funds raised will likely be used to fuel product innovation and improve charging infrastructure for its electric scooters, which include models like the 450X and 450S.

Hero MotoCorp to Retain Stake

Hero MotoCorp’s decision to retain its stake in Ather is seen as a sign of continued confidence in the EV player’s long-term potential. The legacy automaker has been instrumental in supporting Ather’s growth, and its non-participation in the OFS will likely reassure retail and institutional investors.