Ather Energy Reduces IPO Size by 25%, Launch Scheduled for May. Targeting ₹3000 Crore Funding, New EV Plant Planned in Maharashtra. Poised for Competition with Ola Electric.
IPO latest update: Electric vehicle manufacturer Ather Energy has reduced the size of its upcoming Initial Public Offering (IPO) by 25%. The company initially planned to raise ₹4,000 crore, but this has been revised to ₹3,000 crore. Despite market volatility and global economic challenges, the company remains committed to its market entry in May 2025.
A Strong Decision Amidst Market Volatility
In recent months, several companies have either postponed or withdrawn their IPOs due to global uncertainty, market volatility, and other economic factors. However, Ather Energy has chosen to remain steadfast in its strategy. According to merchant bankers, Ather Energy is expected to file a revised Red Herring Prospectus (RHP) with SEBI next week.
Potential 10% Reduction in Valuation
Sources suggest a potential 10% reduction in the company's valuation. The company was previously valued at $1.4 billion, a figure that may now be revised downwards. The company's strategy prioritizes equity funding over debt to meet its operational needs.
IPO Fund Utilization and Project Plan
Ather Energy will primarily allocate the funds raised through its IPO to establish a new electric vehicle manufacturing plant in Shambajinagar, Maharashtra. This project, spread across two phases, will involve an investment of ₹927 crore. Each phase will have a production capacity of 500,000 units, with the entire project slated for completion by March 2027.
Ather Shows Greater Stability Compared to Ola Electric
While Ola Electric has faced challenges related to customer service, maintenance, and regulatory scrutiny, Ather Energy maintained a stable market share of approximately 12% in FY25. Ather's recent launch of its new family scooter, Rizta, further demonstrates its market strength.
