Indian electric vehicle maker Ather Energy Pvt. is considering reducing the size of its upcoming initial public offering by at least $50 million, according to sources familiar with the matter. Initially aiming to raise $400 million, the company is reassessing its IPO plans in response to increased volatility in global stock markets.

Figure 1. Ather Energy Reconsiders IPO Size Amid Market Jitters.

The potential cut is reportedly driven by existing investors weighing a smaller share sale. While Ather still intends to go public in the coming weeks, it is also exploring alternative fundraising options, such as private placements, should market conditions deteriorate further. Figure 1 shows Ather Energy Reconsiders IPO Size Amid Market Jitters.

The company is likewise evaluating a lower valuation target. Originally seeking a valuation close to $2 billion, Ather is now said to be considering a figure closer to $1.6 billion amid shifting investor sentiment.

Ather’s revised IPO strategy could influence how other startups approach public listings during ongoing financial uncertainty.

The Big Picture – What’s Happening with Ather Energy?

Ather Energy, one of India's leading electric vehicles (EV) manufacturers, is reportedly planning to scale back its upcoming IPO by at least $50 million. The company initially aimed to raise around $400 million through the offering. This change is being considered in response to current uncertainties in global financial markets, which are affecting investor sentiment.

Why the IPO Adjustment Now?

The decision to potentially reduce the IPO size is largely driven by volatility in the stock market. Investor appetite for new listings has become more cautious, prompting Ather and its existing stakeholders to reevaluate how much capital to raise and how many shares to offer. This move is also about managing risk and avoiding overvaluation in a shaky market.

Alternative Plans on the Table

Although Ather still intends to go public soon, it's reportedly exploring a Plan B: raising funds through private placements if public market conditions worsen. This dual-track approach gives Ather flexibility and ensures it can still secure necessary funding without relying solely on the IPO.

Valuation Revisions – From $2 Billion to $1.6 Billion?

Initially targeting a valuation near $2 billion, Ather is now said to be considering a lower valuation—closer to $1.6 billion. This reflects a realistic recalibration based on current market appetite. While this may seem like a setback, it could help the company attract investors who are looking for more reasonable entry points.

What This Means for Indian Startups

Ather’s cautious approach could serve as a bellwether for other Indian startups considering IPOs. In a market where timing is everything, companies may start prioritizing strategic flexibility over aggressive fundraising targets. Ather’s next move could shape the playbook for going public in uncertain times.

Reference:

1. https://emobilityplus.com/2025/04/10/ather-energy-may-trim-ipo-size-by-50-million-amid-market-uncertainty/

Cite this article:

Priyadharshini S (2025), Ather Energy May Reduce IPO Size By $50 Million Due to Market Uncertainty, AnaTechMaz, pp. 84