Due to market volatility, Ather Energy may trim its $400 million IPO by $50 million but plans to proceed with the offering in the coming weeks.
EV startup Ather Energy Pvt is considering reducing the size of its initial public offering (IPO) by at least $50 million from the previously planned $400 million. This decision comes as the company’s existing investors contemplate offering fewer shares in the sale.
According to Business Standard, despite recent market volatility, Ather still intends to move forward with its IPO in the coming weeks.
The electric vehicle (EV) maker may also lower its IPO valuation, depending on how investor sentiment develops. If market conditions worsen, Ather could consider a private placement instead. The details of the offering are still being finalised and could change, as per reports.
Ather has not responded to requests for comment.
Founded in 2013, Ather competes in India’s growing electric scooter market, with rivals including the recently listed Ola Electric Mobility. Despite the challenges in the global stock markets, India’s NSE Nifty 50 Index showed resilience, rising by 1.7% on Tuesday, which may help counter some of the broader volatility.
Earlier, Ather received approval from the Securities and Exchange Board of India (SEBI) for its public issue, which includes a fresh equity issue of up to $358 million and an offer for sale of up to 22 million shares.
Major investors like Tiger Global, Caladium Investments, the National Investment and Infrastructure Fund, and Ather’s co-founders were set to offload shares.
However, Ather’s largest shareholder, Hero MotoCorp, which holds around 37% of the company, has no plans to reduce its stake.
