In a volatile market, Ather Energy, one of India’s most promising electric two-wheeler makers, is set to file its Red Herring Prospectus (RHP) this week for its much-awaited public offer. But the company is reducing the size and valuation of its IPO, a move that reflects the overall caution in the market.
Ather Energy IPO Size and Valuation Adjusted
According to some industry reports, Ather Energy will raise between INR 2,900 to 3,200 crore, down from its earlier estimate of INR 3,500 to 3,700 crore. The post-money valuation is expected to be around INR 12,800 crore, a 25–30% reduction from the initial estimates and even more from the earlier band of INR 17,000 – 20,000 crore.
This is a 25–30% markdown from the initial numbers due to weak investor sentiment and volatile secondary markets. Market sources say institutional demand has been cautious and hence issuers like Ather are taking a more pragmatic approach to pricing to ensure full subscription and listing.
Tentative Dates for Anther Energy IPO
While the IPO was earlier slated for early April, the current expectation is that the issue will open on or around 23 April 2025 subject to market conditions and regulatory clearance. Ather got SEBI’s nod in December 2024.
Retail & Shareholder Quotas: Key Points for Investors
The IPO will be a mix of fresh issue and offer for sale (OFS). While some early investors and founders will exit, Hero MotoCorp, which holds a 37% stake in Ather, will not sell any shares in the offer.
Key reservation quotas:
- Retail Quota: 10% of the issue
- Shareholder Quota: Existing shareholders of Hero MotoCorp, even with 1 share, will be eligible under the shareholder reservation portion, increasing their chances of allotment. This shareholder reservation mechanism will attract retail investors holding Hero MotoCorp shares as there is synergy and brand trust between the parent and the EV startup.
Tentative Pricing Band and Peer Comparison
Though the price band has not been announced, early buzz suggests a price band of INR 310 – 330 per share. Ather is pricing itself cautiously in a competitive electric mobility space with players like Ola Electric, TVS Motor Company, Bajaj Auto. Ather is currently the fourth-largest electric two-wheeler manufacturer in India.
A Tough IPO Season – Ather’s Strategic Call
The company’s move to revise its IPO strategy comes during a lean phase in India’s IPO calendar. There have been no mainboard listings in March or the ongoing April month, underscoring the impact of global macro headwinds and risk aversion among domestic investors.
Ather’s recalibration could be seen as a strategic attempt to ensure market receptiveness, rather than delay or risk under-subscription. Importantly, sources emphasize that Ather remains fully committed to its IPO and has no plans to shelve the offering.
Manufacturing Base and Founding Vision
Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy has manufacturing units in Whitefield (Bangalore) and Hosur (Tamil Nadu). The company has earned a reputation for quality engineering, innovation, and clean design — characteristics that resonate with the aspirational Indian urban consumer.
Investor Takeaway
While reduced valuations may hint at near-term market pressure, they also offer long-term investors an attractive entry point into India’s fast-growing EV ecosystem. Ather Energy’s listing will be a key litmus test not only for the EV sector but also for broader investor sentiment toward mid-sized, tech-driven IPOs in the current climate.
With Hero MotoCorp as an anchor investor, robust product credibility, and favorable industry tailwinds in the long term, Ather Energy’s IPO is one to watch closely.
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