EV Maker Ather Reportedly Weighs Smaller IPO Amid Market Turmoil

Ather Energy Pvt. is weighing a reduction of at least $50 million in the size of its planned initial public offering, down from an earlier target of around $400 million, according to people familiar with the matter.

The potential downsizing is driven by some of the Indian electric vehicle maker's existing investors who are considering selling fewer shares, the people said, requesting anonymity due to the private nature of the discussions. Despite ongoing volatility in global equity markets, Ather still aims to move forward with the IPO in the coming weeks, they added.

One person noted that the company might also slightly lower its valuation expectations. However, if market sentiment worsens further, Ather could consider raising funds through a private placement instead.

Deliberations are ongoing, and the details of the offering could still change. Ather declined to comment.

Founded in 2013, Ather competes with other electric scooter manufacturers in India, including the recently listed Ola Electric Mobility Ltd, as demand for EV two-wheelers continues to grow. Ola's stock closed at 50.88 rupees on Tuesday, marking a 33% drop from its IPO price of 76 rupees.

India's NSE Nifty 50 Index has fared better than many global markets this week, buoyed by the limited exposure of Indian companies to Western earnings. The benchmark index rose 1.7% on Tuesday.

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