Ather Energy is revising its IPO expectations once again, with sources telling CNBC-TV18 that the electric two-wheeler maker is now targeting a post-money valuation of around ₹12,800 crore. This is lower than the earlier valuation of ₹14,000 crore that the company was aiming for.

As a result, the IPO size is also likely to be scaled down to ₹2,900 crore to ₹3,200 crore ($350 million – $375 million) from the earlier target of up to ₹3,500 crore to ₹3,700 crore ($400 million).

The downsizing of the issue is attributed to choppy market conditions and muted investor sentiment, sources added further.

Sources said that the IPO will include both fresh issue of shares and an offer-for-sale (OFS) component, with promoters and select early investors likely to dilute part of their holdings. Hero MotoCorp, which owns over 37% in Ather, is not expected to sell any shares in the IPO.

This is the second instance of Ather cutting down its valuation ahead of its upcoming public offer. The company had earlier aimed for a valuation range between ₹17,000 crore and ₹20,000 crore.

After having secured regulatory approval to go public in December last year, Ather had planned to list at the start of 2025, before the issue was delayed to the first week of April and sources have now said that there could be a delay of another month.

However, Ather has no plans to withdraw the IPO, the source added.

CNBC-TV18 reached out to Ather Energy with queries and is still awaiting a response.