Ather Energy reduces IPO size, lowers valuation to ₹12,800cr: Report
What's the story
Ather Energy, a leading name in the electric two-wheeler space, has adjusted its IPO expectations. The company now expects a post-money valuation of roughly ₹12,800 crore, CNBC-TV18 has reported. This is lower than the earlier estimated valuation of ₹14,000 crore. The size of the IPO has also been scaled down from up to ₹3,500 crore to ₹2,900-3,200 crore.
Challenges
Market conditions impact IPO plans
Reportedly, the decision to downsize the IPO comes amid unstable market conditions and subdued investor sentiment. The upcoming IPO will comprise a fresh issue of shares and an offer-for-sale (OFS) component. Promoters and select early investors are tipped to dilute part of their holdings. However, Hero MotoCorp, which holds over 37% in Ather, is not expected to sell any shares in the IPO.
Timeline
Ather Energy's IPO journey
Notably, this is the second time Ather has slashed its valuation ahead of its impending public offer. Initially, the company had targeted a valuation between ₹17,000 crore and ₹20,000 crore. After receiving regulatory approval to go public in December last year, Ather intended to list at the beginning of 2025. However, this was deferred to the first week of April, and CNBC-TV18 now claims it might be shifted to May. Ather has no plans of withdrawing the IPO.