Ather trims IPO size by 25 per cent to Rs 3,000 crore, to launch in May

Electric vehicle maker Ather Energy has reduced the size of its initial public offering (IPO) by 25 per cent—from Rs 4,000 crore to Rs 3,000 crore—but will go ahead with its market debut in May, a month later than originally planned, according to merchant bankers familiar with the development.

The move is significant as several companies are reconsidering or deferring their IPO plans amidst a volatile stock market, driven by global uncertainty and the impact of high tariffs imposed by US President Donald Trump. Ather, however, has chosen to proceed with the offering.

The company is expected to file its final red herring prospectus next week, incorporating the revised numbers, with the Securities and Exchange Board of India (Sebi). A spokesperson for Ather declined to comment on the development.

Merchant bankers said the valuation for the IPO is also likely to be lowered by around 10 per cent, from an earlier target of $1.4 billion.

No new IPOs have hit the market in March or April so far, amid the ongoing global crisis. In contrast, February saw six IPOs raise over Rs 4,845 crore collectively.

Ather’s decision to proceed stems from its desire to avoid raising debt to meet operational needs in the interim, say bankers.

The company plans to deploy a large portion of the proceeds to set up a new electric vehicle manufacturing facility in Shambhaji Nagar, Maharashtra, with an investment of Rs 927 crore across two phases. The first and second phases will each have a capacity of 0.5 million units, with the project expected to be completed by March 2027.

Ola Electric was the first electric two-wheeler startup to go public last year. While it was the market leader in FY25, its stock—which listed at Rs 75—has since fallen and was trading at Rs 50.34 on Wednesday afternoon.

Ola Electric has faced criticism over service and maintenance issues and regulatory scrutiny, leading to a decline in market share in recent months.

Ather, despite launching its family scooter Rizta, has retained a market share of around 12 per cent in FY25, roughly unchanged from the previous financial year.