EV maker Ather is said to consider smaller IPO amid market chaos

An employee assembles an Ather Energy 450X electric scooter at the company’s manufacturing facility in Hosur, India. Bloomberg

Ather Energy Pvt is considering cutting the size of its initial public offering by at least $50 million from an earlier target of about $400 million, people familiar with the matter said.

The potential smaller size is because the Indian electric-vehicle maker’s existing investors are considering offering fewer shares in the sale, the people said, asking not to be identified because the deliberations are private. Ather is still planning to go ahead with the IPO in the coming weeks despite the fresh volatility in global stock markets, according to the people.

Ather may also consider a small reduction in the IPO valuation it’s planning to seek, one of the people said. However, if investor sentiment deteriorates further, Ather could pursue a private placement instead, according to the person.

Considerations are ongoing and details of the offering could change, the people said. A representative for Ather didn’t respond to a request for comment.

Founded in 2013, Ather competes with manufacturers including recently listed Ola Electric Mobility Ltd. in India, where electric scooters are increasingly popular. Ola closed at Rs 50.88 Tuesday, down 33% from its IPO price of Rs 76.

NSE Nifty 50 Index hasn’t been as badly hit as many other markets this week, thanks to Indian companies’ relatively smaller earnings exposure to Western markets. The benchmark rose 1.7% Tuesday.