Electric vehicle manufacturer Ather Energy has revised its initial public offering (IPO) plans to align with current market conditions. The Bangalore-headquartered company has scaled down the size of its IPO by 18%, setting it at 26.26 billion Indian rupees, or approximately $308.3 million. This strategic move comes as the firm targets a post-money valuation of $1.4 billion, slightly lower than the range of $1.5 billion to $2 billion it aimed for last year. By adjusting the number of shares offered by existing shareholders and revising financial goals, Ather aims to ensure a successful entry into the public market.

Ather's IPO process involves several key stakeholders reducing their stakes in the company. Notably, co-founders Tarun Mehta and Swapnil Jain, along with prominent investors such as National Investment and Infrastructure Fund Limited (NIIF) and Tiger Global Management’s Internet Fund III, will offload portions of their shares. Meanwhile, Hero MotoCorp, holding over 40% of Ather's equity, has opted not to participate in this stake sale. The proceeds from the IPO are earmarked for significant investments in manufacturing infrastructure, research and development, marketing strategies, and debt repayment. These initiatives reflect Ather's commitment to expanding its operations and enhancing its product offerings.

The electric two-wheeler sector in India is witnessing rapid growth, driven by increased consumer adoption and government incentives. Ather's sales figures reveal a 21% rise in 2024, reaching nearly 126,353 units sold, capturing a notable 10.7% market share. Despite operational challenges, the company reported revenue of 15.79 billion Indian rupees in the nine months leading up to December, showcasing gradual improvement in financial performance. As competitors like Ola Electric navigate fluctuating stock prices post-IPO, Ather's measured approach highlights the importance of adaptability and strategic foresight in achieving long-term success in the dynamic EV industry.