Market Performance
The year 2025 started on a modest note for the IPO market. In the first two months, only 10 mainboard IPOs debuted on Indian stock exchanges, raising ₹15,983 crore. This represents a 23% increase compared to ₹12,990 crore raised in the same period of 2024. Despite this positive start, the IPO market has faced challenges since February, with limited activity. This pause has been attributed to the poor performance of listed companies, heightened volatility in the secondary market, and various global and domestic uncertainties, including U.S. tariffs, weak corporate earnings, and slower economic growth.
Main News
Ather Energy, the Bengaluru-based electric vehicle (EV) company, is preparing to launch its initial public offering (IPO) on the 28th of April, 2025. The company has revised its IPO plan amidst a turbulent market environment. Initially, Ather intended to raise ₹3,100 crore through a fresh issue of shares but has now reduced the size of its IPO to ₹2,626 crore. Along with this reduction, Ather has also halved the size of its offer for sale (OFS) to 1.1 crore equity shares, down from the previously proposed 2.2 crore shares.
The revised valuation for Ather Energy has also been reduced. The company is now seeking a market valuation of ₹12,000 crore, down from the earlier projected ₹14,000 crore. This adjustment is in line with the current weak investor sentiment and the ongoing volatility in the markets.
Ather Energy first filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in September 2024. The approval for the IPO was granted in December 2024. Initially aiming for an early 2025 launch, the company delayed its public offering to April due to the challenging market conditions and the cautious risk appetite of investors.
The revised DRHP, which includes the changes to the IPO’s size and valuation, was filed by Ather’s co-founders Tarun Mehta and Swapnil Jain. Other stakeholders in the OFS include individual shareholders Amit Bhatia and Karandeep Singh, alongside corporate shareholders such as Caladium Investment Pte Ltd, National Investment and Infrastructure Fund II, Internet Fund III, 3State Ventures Pte., IITM Incubation Cell, and IITMS Rural Technology and Business Incubator.
Company Details
- Company Name: Ather Energy
- Sector: Electric Vehicle (EV)
- Headquarters: Bengaluru, India
- IPO Launch Date: April 28, 2025
IPO Details
- Proposed IPO Size: ₹2,626 crore (fresh issue of shares)
- OFS Size: 1.1 crore equity shares (down from 2.2 crore in the previous filing)
- Valuation: ₹12,000 crore (revised from ₹14,000 crore)
Ather Energy is set to make its market debut despite the current uncertainty, reflecting the company’s strategic approach to market conditions.
Conclusion
Ather Energy’s revised IPO plan marks a cautious yet significant step for the electric vehicle company amidst a challenging market. The reduction in both the IPO size and the company’s valuation highlights the ongoing market volatility and its impact on investor sentiment. As the EV sector continues to grow in India, Ather Energy’s public offering will be closely watched by market participants.
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