Indian electric scooter maker Ather Energy is reportedly considering launching its initial public offering (IPO) in Mumbai at a valuation of around $1.2 billion. The company, backed by Hero MotoCorp, had earlier aimed for a $2 billion valuation, but market conditions have led to a revised target.
According to reports, Ather may sell shares by the end of March or early April. The IPO is expected to raise about $400 million through a mix of primary and secondary share sales. Existing investors such as National Investment and Infrastructure Fund Ltd. (NIIF) and Tiger Global’s Internet Fund III will offload stakes, while Ather’s founders, Tarun Mehta and Swapnil Jain, may also reduce their holdings. However, Hero MotoCorp, which owns over 37% of Ather, will not participate in the share sale.
Ather’s Growth and Competitive Landscape
Ather was one of the first electric two-wheeler startups in India when it was formed in 2013. The startup initially targeted the premium segment but later expanded its market to compete with Bajaj Auto, TVS Motor, and Ola Electric.
But the initial public offering is being timed when the demand for electric scooters in the nation is decelerating. Two-wheeler electric vehicle sales fell 8% year over year to 76,086 units during February 2025, according to the Federation of Automobile Dealers’ Association (FADA). However, Ather registered 20% sales growth over the past year, while competitor Ola Electric registered 52% sales growth.
Ather’s IPO Follows Ola’s Market Debut
Ather’s public listing will be the second listing by an Indian standalone electric vehicle company, following Ola Electric, which listed in 2024. However, Ola’s stock performance has been weak, and the stock price declined 65% from an August 2024 high. Ola’s market capitalisation, which increased to $7.7 billion, is now down to $2.6 billion.
With Sensex’s recent decline, there could be hurdles to the IPO of Ather. India’s benchmark index is 5% lower so far in 2025 and 14% lower than its September 2024 high. The fortunes of Ather’s IPO will be based on market and investor sentiment towards the Indian EV market and market conditions.
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Source: Moneycontrol.
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