Ather Values Its IPO At $1.2 Billion, Down From $2 Billion Estimates

Ather Energy is planning to go public this month with the launch of its initial public offering (IPO) in Mumbai. What was earlier valued by the Bengaluru-based EV company at $2 billion (₹17,456 crores), has now been scaled back to approximately $1.2 billion (₹10,471 crores), as per reports. Ather is aiming to offer shares either by the end of March or early April, potentially raising about $400 million (₹3,488 crores), reports indicate further. 

The offering will consist of both new shares and existing shares being released by founders Tarun Mehta and Swapnil Jain, along with current investors including National Investment and Infrastructure Fund Ltd. and Tiger Global Management's Internet Fund III. Hero MotoCorp, which holds just over 37 per cent of Ather and is its largest shareholder, will not be participating in the share sale. This would mark the second IPO by an Indian electric vehicle manufacturer. Ola, backed by Japan's SoftBank Group Corp., made its market debut last year.

The IPO comes during a period of softening demand for electric scooters in India. February sales of two-wheelers decreased by 8 per cent year-on-year to 76,086 units, according to data from the Federation of Automobile Dealers' Association. Last year, Ather's sales grew by 20 per cent, while Ola's increased by 52 per cent.

With the money raised, Ather Energy has plans to not only launch new products, but also further solidify its in-house battery technology. As for the former, the marque plans to join the electric motorcycle bandwagon too, however, details about that are still scarce. To know more about Ather’s future plans, head to the link here.