Ather Energy, an Indian electric scooter maker, has reduced its target price for its Initial Public Offering (IPO) by 44%. The company is now valued at up to $1.40 billion, much less than its earlier target.
Ather is planning to raise around $350 million from its IPO, which is India’s third-largest primary share sale this year. However, this comes at a time when global markets are affected by U.S. tariff policies.
Earlier this week, Ather decided to reduce the size of its IPO by 15%, meaning it will issue fewer new shares. Existing investors, including Ather’s founders Tarun Mehta and Swapnil Jain, and companies like GIC and Tiger Global, will also sell fewer shares than planned.
The company will offer shares in the IPO at a price between 304 and 321 rupees each. Hero MotoCorp, which owns about 40% of Ather, will not sell any shares in this IPO.
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Bidding for the IPO will begin on April 28 and last for three days. Anchor investors can buy shares in a private placement on April 25.
Ather, one of the first companies to sell electric scooters in India in 2018, is still behind larger competitors like Ola Electric, TVS Motor, and Bajaj Auto in terms of sales.
Ather’s valuation is much lower than Ola Electric, which is valued at $2.7 billion. The company hopes that its new “Rizta” scooters will help increase sales and reduce the gap with competitors. Ather also plans to cut costs with a new vehicle platform.
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The launch of the “Rizta” scooters has already helped Ather reduce its losses and increase its revenue by 28% in the nine months leading up to December 2024.
