EV Start-Up Ather Energy May Trim Its IPO Size Amid Market Volatility

Stock markets across the world have been volatile due to trade tariffs announced by US President Donald Trump. With his 26% tariff imposition on Indian goods, Trump has sent shockwaves across various sectors, including the Indian IPO market. The Economic Times had earlier reported that the reciprocal tariffs could prompt new-age companies to reassess their plans to go public on Indian stock exchanges.

Soon after the tariff announcement, EV start-up Ather Energy is reportedly planning to trim its IPO size by at least $50 million from its previous target of $400 million due to ongoing volatility in both Indian and global stock markets, as per Bloomberg reports. Currently, the EV maker’s shareholders are thinking about offering lesser number of shares under the offer-for-sale component of the IPO.

Ather Energy’s proposed public issue, which secured Sebi approval in late December last year, included a fresh equity issue worth upto $358 million, along with an offer for sale of up to 2.2 crore shares. Institutional investors such as Tiger Global, Caladium Investments, the National Investment and Infrastructure Fund, along with Ather’s cofounders Tarun Mehta and Swapnil Jain were slated to offload shares as part of the IPO.

Ather’s largest shareholder --- Hero MotoCorp --- which holds around 37% stake has no plans to reduce its stake in the electric vehicle unicorn.

Ather Energy's IPO Plans

Ather's IPO is expected to be launched in April 2025. Ather filed draft papers in September last year to raise funds to set up an electric two-wheeler factory in Maharashtra and debt reduction.

This will be the second electric two-wheeler company looking to go public after Ola Electric Mobility floated the Rs 6,145-crore IPO in August last year. This was also the first issue by an automaker in the country in more than 20 years.

Ola Electric's IPO had a fresh issue of up to Rs 5,500 crore and an OFS of up to 8,49,41,997 equity shares.

Apart from its IPO plans, Ather Energy has also been expanding its research and development capabilities.

Recently, the company announced the expansion of its R&D and testing capabilities at its product testing & validation centre - The Juggernaut in Bengaluru's Begur.