Ather Energy Cuts IPO Size to ₹2,626 cr from ₹3,100 cr
In a recent development, Ather Energy, an electric vehicle (EV) startup, has reduced the size of its initial public offering (IPO) to ₹2,626 crore from the earlier planned ₹3,100 crore. This reduction in IPO size was revealed in the company’s prospectus, which was filed on Tuesday.
The IPO, which is an offer-for-sale (OFS) of up to 1.1 crore shares, is scheduled to open for subscription on April 28 and close on April 30. The issue is being managed by a consortium of book-running lead managers, comprising ICICI Securities, Axis Capital, and Kotak Mahindra Capital Company.
Ather Energy, which is eyeing a valuation of about ₹12,000 crore for the IPO, is looking to raise funds to fuel its growth plans, including expanding its production capacity, enhancing its product offerings, and strengthening its distribution network.
The company’s IPO, which is a relatively small-sized issue, is being touted as one of the most eagerly awaited public offerings in recent times. Ather Energy’s success in the IPO market will be closely watched by investors and analysts, as it will set a benchmark for other EV startups that are planning to go public in the near future.
Ather Energy, which was founded in 2013, has been at the forefront of India’s EV revolution, with a focus on developing innovative and sustainable mobility solutions. The company’s products, including its flagship scooter, the Ather 450X, have received widespread acclaim for their performance, range, and features.
The company’s decision to reduce the IPO size is seen as a strategic move to maintain the quality of the issue and ensure that the IPO is well-received by investors. By reducing the IPO size, Ather Energy can maintain a higher quality of investors and ensure that the issue is not over-subscribed, which can lead to volatility in the stock price.
The IPO market has been witnessing a surge in activity in recent times, with several companies, including new-age startups, listing their shares on the bourses. The success of IPOs like Zomato, Paytm, and Nykaa has sparked a new wave of interest in the IPO market, with many companies looking to tap into the liquidity and raise funds to fuel their growth plans.
Ather Energy’s IPO, which is being seen as a bellwether for the EV industry, is expected to attract significant interest from investors, including institutional investors, high-net-worth individuals, and retail investors. The company’s strong brand reputation, innovative products, and robust financial performance are expected to drive demand for the IPO.
In conclusion, Ather Energy’s decision to reduce the size of its IPO to ₹2,626 crore from ₹3,100 crore is a strategic move to ensure the success of the issue. The company’s focus on quality over quantity is likely to pay off, as it is expected to attract a high-quality investor base and ensure a smooth listing. As the EV industry continues to gain momentum in India, Ather Energy’s IPO is expected to be a significant milestone in the company’s journey towards becoming a leading player in the industry.
