Ather Energy is gearing up for its initial public offering (IPO), but recent reports indicate that the company is scaling back its financial goals. The electric two-wheeler manufacturer now aims for an IPO size of ₹2,900 crore to ₹3,200 crore, a decrease from its previous target of ₹3,500 crore to ₹3,700 crore. This adjustment reflects the company’s response to unpredictable market conditions and waning investor interest.
Ather Energy’s New Valuation Goals
With this updated IPO size, Ather Energy is targeting a post-money valuation of roughly ₹12,800 crore, down from an earlier forecast of ₹14,000 crore. Such fluctuations in valuation highlight the challenges faced by tech-driven firms in the current investment climate.
- IPO Size: ₹2,900 crore – ₹3,200 crore
- Previous Target: ₹3,500 crore – ₹3,700 crore
- New Valuation: ₹12,800 crore
- Previous Valuation Target: ₹17,000 crore – ₹20,000 crore
Structure of the IPO
The upcoming IPO will include both new share issuances and an offer-for-sale (OFS) component. Founders and select early investors are expected to divest part of their stakes to make way for new capital. However, Hero MotoCorp, which owns over 37% of Ather, is not expected to sell any shares during this offering.
A Pattern of Valuation Adjustments
This is not the first instance of Ather Energy adjusting its valuation ahead of its IPO. Previously, the company aimed for a much higher valuation range, which underscores the shifting dynamics within the electric vehicle market and the broader economic landscape.
Ather Energy’s strategic revisions may reflect a prudent approach to navigating a challenging investment environment. Keeping a close eye on market reactions will be crucial as the company prepares for its public debut. Stay tuned for more updates on this evolving story.
