Ather Energy eyes $1.2B valuation in upcoming IPO: Report
What's the story
Ather Energy, an Indian electric two-wheeler maker, is planning an IPO here at a valuation of about $1.2 billion, Bloomberg has reported. The firm had initially targeted a valuation of about $2 billion but has now revised its target. The IPO will include both primary and secondary shares, with the founders and existing investors offloading stakes. Hero MotoCorp, Ather's largest shareholder with over 37% stake, won't be part of the share sale.
Fundraising prospects
IPO could generate about $400M for Ather
The IPO could raise about $400 million for Ather Energy. However, the details including valuation, timing, and size are still being discussed and may change. A representative of Ather declined to comment on the matter when approached for a statement. Bloomberg had earlier reported that Ather was working with investment banks on a potential IPO in Mumbai.
Company overview
Ather Energy's journey and competition
Founded in 2013, Ather Energy is one of India's earliest electric two-wheeler start-ups. Initially positioned as a premium player, the company has been striving to expand its market share amid increasing competition from established manufacturers such as Bajaj Auto, TVS Motor Company, and Ola Electric.
Market trends
Ola Electric's market debut and share performance
Ola Electric debuted in the market last year. However, its shares have tumbled as much as 65% from a peak in August when the firm's market value reached $7.7 billion. Now, Ola is trading at a record low with a market value of about $2.6 billion according to the reports.