Ather Energy to release its IPO with $1.2 billion valuation

Ather Energy Pvt., an Indian electric scooter manufacturer supported by Hero MotoCorp Ltd., may proceed with its intended IPO in Mumbai at a valuation of roughly $1.2 billion, Livemint reported. 

Citing an anonymous source, the report said, the company, which had originally aimed for a valuation of roughly $2 billion, could try to sell shares by the end of March or the beginning of April. Moreover, Ather might generate roughly $400 million through a share sale, the report added.

However, discussions are still ongoing, and specifics like the size, timing, and valuation could still change, Livemint added.

There is no official announcement from the Ather.

According to a report by Bloomberg News last year, Ather was collaborating with financial banks on a possible initial public offering (IPO) in Mumbai.

India's benchmark Sensex has been declining recently after nine years of growth. It is down 14% from a peak in September and roughly 5% this year.

According to the IPO filings, the offering will include both primary and secondary shares, and current investors such as Tiger Global Management's Internet Fund III and National Investment and Infrastructure Fund Ltd., along with founders Tarun Mehta and Swapnil Jain, would be selling their shares. Hero MotoCorp, the largest shareholder in Ather with little more than 37% of the company, would not be selling its shares.

The IPO overlaps with India's declining demand for electric scooters. According to figures from the Federation of Automobile Dealers' Association, two-wheeler sales fell 8% in February compared to the same month last year, reaching 76,086 units. Ola's sales increased 52% last year, while Ather's increased 20%.

The update will make Ather the second pure-play electric vehicle manufacturer in India to sell shares. Last year, Ola, supported by Softbank Group Corp. of Japan, debuted on the market.

Since August, when the company's market capitalization peaked at $7.7 billion, Ola's shares have fallen as much as 65%. With a market valuation of roughly $2.6 billion, Ola was trading at a record low on Tuesday.