Indian e-scooter maker Ather Energy plans to list at a valuation of up to $1.4 billion, about 44% below its original target, as US tariff policy-triggered global market volatility prompts companies to rethink listing plans.
Ather said on Wednesday that it will sell shares at between 304 rupees and 321 rupees in what will be India’s third-largest IPO this year, a day after slashing the IPO size to $350 million by reducing the quantum of new and existing shares to be sold.
Rising global market volatility, driven by US tariff flip-flops, is forcing companies to recalibrate IPO ambitions to avoid weak demand or failed listings, analysts said, signaling tougher conditions ahead for new-age firms seeking to tap public markets.
LG Electronics, which planned to list its India unit in May, has delayed its IPO due to market volatility, a source with direct knowledge said on Wednesday. The consumer appliances maker is now targeting to launch the share sale in the second or third quarter of fiscal year 2026.
“An IPO is a once-in-a-lifetime event for a company and companies would like to launch their IPO when conditions are ideal,” Pranav Haldea, managing director at capital market information provider Prime Database Group, said.
India was the world’s second-largest market by IPO proceeds in 2024 but listings are down 15% this year, data compiled by LSEG showed.
Investors appear to be averse to loss-making companies at a time when markets are highly volatile, said Arun Kejriwal of Kejriwal Research.
Ather’s loss-making rival Ola Electric made a strong debut in one of India’s biggest IPOs of 2024, but the company has since seen its market value erode by nearly one-third amid market share losses and regulatory troubles.
Bengaluru-based Ather, whose founder Tarun Mehta likes to refer to their tech-loaded scooters as the “Apple of electric two-wheelers”, is counting on newer vehicles to turn profitable.
Reuters
