A significant part of this downsizing has been a cut in the offer for sale (OFS), with secondary sale forming only 12 percent of the public issue, said its investment bankers.
The reduction in the initial public offering (IPO) size of electric two-wheeler manufacturer Ather Energy to ₹2,626 crore from ₹3,100 crore was a result of shareholders seeing long-term growth potential and no cause for concern, the company said at a press-briefing on Wednesday.
The price band of the issue has been set at ₹304- 321 per share. The IPO opens on April 28 and closes on April 30, with anchor investors’ window open on April 25.
A significant part of this downsizing has been a cut in the offer for sale (OFS), with secondary sale forming only 12 per cent of the public issue, said its investment bankers.
Founders Tarun Mehta and Swapnil Jain will each offload shares worth ₹31.4 crore IPO, whereas Tiger Global, GIC, NIIF and IIT Madras will sell shares worth ₹12.84 crore, ₹192.71 crore, ₹84.57 crore, and ₹ 1.13 crore, respectively.
Promoter Hero MotoCorp is not selling any shares through the OFS.
Tarun Mehta, co-founder of Ather Energy, said that it plans to expand its distribution and bring in more products, while maintaining capital efficiency to keep up with the evolving technology. “From the start itself, our focus has been on trying to maintain agility and capital efficiency in all of our operations…It’s a rapidly changing business. Technology is also changing. So you want to maintain a fair amount of agility in order to respond to certain changes which might happen at various levels,” he said.
Mehta said Ather isn’t dependent on suppliers for crucial pieces of its technology. IP ownership, patents, 80 per cent of the hardware—battery management systems, motor controllers, dashboards—are all in-house. However, the actual production is done by vendors.
The Bangalore-based company has also increased its supplier base rather than investing in vertical integration of its components to ensure redundancy in the supply and agility in the supply chain, Mehta said.
Despite the recent market volatility, the company said it has seen a very positive and strong interest from investors.
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Published on April 23, 2025
