Friday | May 30 2025 | 03:59:07 AM
Electric scooter maker Ather Energy has scaled back the size of its upcoming initial public offering (IPO), according to its prospectus filed on Tuesday. The Bengaluru-based company now aims to raise Rs 2,626 crore (approximately USD 308.3 million) through the sale of new shares, down from its earlier target of Rs 3,100 crore.
In a significant revision, existing shareholders will offload just 11.1 million shares in the IPO—roughly half of the 22 million initially planned. Hero MotoCorp, Ather’s largest shareholder with a 40 per cent stake, has reiterated that it will not be selling any of its shares in the public issue.
While Ather has not officially cited a reason for the reduced offering, the move comes amid a turbulent period for Indian and global stock markets. Investor sentiment has been rattled by US tariff concerns, persistent foreign outflows, and signs of softening consumption trends in India. Between the second half of the last fiscal year and mid-April, foreign investors sold nearly USD 33 billion worth of Indian equities.
Ather’s IPO bidding will be open from April 28 to April 30, with anchor investors set to participate in a private placement round on April 25. The company plans to use the proceeds to fund a new manufacturing facility in Maharashtra and invest in research and development.
Founded in 2013, Ather was among the pioneers in India’s electric two-wheeler segment, launching its first scooter in 2018. However, it has since ceded market share to better-capitalized rivals like Ola Electric and TVS Motor, which have benefited from aggressive pricing and broader distribution.
