Day: April 9, 2025

Electric vehicle maker Ather Energy has cut the size of its planned IPO by a fourth—from ₹4,000 crore earlier to ₹3,000 crore—according to merchant bankers familiar with the development. However, the company is going ahead with its maiden offering in May, delayed by a month from its original timeline. 

The move is significant at a time when several other companies are reconsidering or indefinitely postponing their IPO plans amid sharp stock market corrections and uncertainty on the bourses, triggered by global crises following Donald Trump’s imposition of high tariffs. Ather, however, has decided to take the plunge. 

The company is expected to file its final red herring prospectus with the revised numbers to Sebi next week, after which it will likely receive the regulator’s approval. An Ather spokesperson declined to comment on the matter.

Merchant bankers said the valuation of the IPO has also been reduced from a post money valuation of $1.6 billion by 10 per cent. 

No new IPOs have hit the market in either March or April so far, owing to global volatility. In contrast, February saw six IPOs collectively raise over ₹4,845 crore.

Several companies have been preparing to tap the markets, but are currently on hold. These include LG Electronics’ planned ₹15,000 crore issue, shared workspace provider Smartworks, Brigade Hotel Ventures, IndiQube, and IndoGulf Cropsciences, among others. 

Merchant bankers said Ather chose not to adopt a ‘wait and watch’ approach, as doing so would have forced it to raise debt to support operations in the interim.

A substantial portion of the IPO proceeds will be used to set up a new electric vehicle plant in Shambhaji Nagar, Maharashtra, with a phased investment of ₹927 crore. The plant will have a production capacity of 0.5 million units in the first phase and another 0.5 million in the second, both to be completed by March 2027. 

Ola Electric was the first electric two-wheeler startup to go public, doing so last year. Despite being the market leader in FY25, its shares—which listed at ₹75—have fallen significantly and are currently trading at ₹50.34 (as of this afternoon), below the issue price.

The company has faced stiff challenges, including allegations of poor service and maintenance, and regulatory scrutiny from government departments, leading to a decline in market share over recent months. 

Ather, despite launching its new family scooter Rizta, has maintained a market share of around 12 per cent in FY25—roughly the same level as the previous year.

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India has approved a major government-to-government agreement with France to procure 26 Rafale Marine fighter jets, government sources said. Valued at over ₹63,000 crore, the deal is expected to be signed shortly. 

Under the agreement, the Indian Navy will receive 22 single-seat and four twin-seat aircraft. 

In July 2023, the Ministry of Defence gave the green light to acquire Rafale-M fighter jets from France, primarily for deployment on the Indian-built aircraft carrier INS Vikrant. 

Deliveries of the 26 Rafale Marine jets are expected to begin in approximately four years. The Indian Navy is likely to receive the initial batch by the end of 2029, with full induction anticipated by 2031.

After induction, the jets will be deployed on India’s aircraft carriers—INS Vikramaditya and the indigenously built INS Vikrant—gradually phasing out the ageing MiG-29K fleet.

In addition to bolstering the Indian Navy’s air power, the agreement is also expected to enhance the Indian Air Force’s operational capabilities. The new Rafale Marine jets will contribute to the IAF’s “buddy-buddy” aerial refuelling system, enabling up to 10 Rafale aircraft to refuel one another mid-air, thereby significantly extending their operational range.

Air Force chief’s concerns over ageing fleet

The development comes at a time when Air Chief Marshal AP Singh has repeatedly raised concerns about the IAF’s ageing fleet. Speaking at the Chanakya Dialogues conclave last month, he said the IAF requires the induction of 35 to 40 fighter jets annually to address existing shortfalls and replace ageing fleets due for decommissioning within the next five to ten years.

According to the Air Chief Marshal, the IAF is currently operating only 31 active fighter squadrons—well below the sanctioned strength of 42—posing challenges to maintaining operational readiness. 

Singh has also advocated for increased private sector involvement in defence aerospace manufacturing. Notably, he has publicly criticised state-run Hindustan Aeronautics Limited (HAL) for delays in delivering the Tejas Mk1A fighter jets. During the Aero India show in February, the Air Chief Marshal expressed dissatisfaction to HAL officials, stating that he had “no confidence” in the state-owned aerospace firm. 

India’s Rafale fighter jets

India’s acquisition of Rafale fighter jets has been a landmark development in the country’s military modernisation. The first batch of Rafales arrived in Ambala in 2020, marking a new era in Indian air power.

In 2016, India signed a €7.87 billion deal with Dassault Aviation for 36 Rafale fighter jets, which were delivered between 2019 and 2022. The first five Rafales arrived at Ambala Air Force Station in Haryana on July 29, 2020, after a 7,000-km journey from France. These jets were part of a broader effort to strengthen the Indian Air Force’s combat capabilities.

Rafale jets in Ambala

The arrival of the Rafales in Ambala was celebrated as a historic moment, marking a significant upgrade to India’s air fleet. The jets joined No. 17 Squadron “Golden Arrows” and were later followed by No. 101 “Falcons” Squadron at Hashimara Air Force Station.

The Rafales are equipped with 13 India-specific enhancements, including advanced radar modes and low-band jammers, tailored to optimise performance within the Indian Air Force’s operational environment.

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Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday invoked a Mahabharat reference when asked about the extent to which monetary policy would need to support economic growth in the current global economic climate. 

“I am Sanjay, but not the Sanjay of Mahabharat to be able to foresee that far,” said the Governor, referring to the mythological figure Sanjay, who was believed to possess divine sight. “I do not have that divine vision that he had.” 

Expanding on the central bank’s position, Malhotra said, “The government has done its bit in the Budget, and we have responded with a rate cut and an accommodative stance. Where this will lead, we do not yet know. But we will work together to manage the growth and inflation dynamic.”

RBI MPC rate cut and economic outlook

The RBI’s Monetary Policy Committee (MPC), led by Malhotra, reduced the repo rate by 25 basis points to 6 per cent, marking the second cut this year. Additionally, the central bank shifted its stance from neutral to accommodative, indicating the possibility of further rate cuts if economic conditions require. 

“The domestic growth-inflation trajectory demands monetary policy to be growth-supportive while being watchful on the inflation front,” Malhotra stated. “We are aiming for non-inflationary growth built on improved demand and supply responses and sustained macroeconomic balance.”

Despite these measures, the RBI revised its GDP growth projection for financial year 2025-26 downward from 6.7 per cent to 6.5 per cent, citing uncertainties stemming from global trade tensions due to US President Donald Trump imposing retaliatory tariffs. The Governor pointed to the US. trade tariffs as a significant risk factor, warning that they had “exacerbated uncertainties clouding the economic outlook across regions, posing new headwinds for global growth and inflation.”

Global economic uncertainty and inflation

Governor Malhotra stated that the year had begun on an “anxious note” for the global economy, with trade frictions unsettling financial markets. “The global economic outlook is fast changing,” he noted. “Amid this turbulence, the US dollar has weakened appreciably; bond yields have softened significantly; equity markets are correcting; and crude oil prices have fallen to their lowest in over three years.” 

Inflation, however, offered a silver lining. India’s retail inflation eased to a seven-month low of 3.61 per cent in February 2025, bringing it below the RBI’s mid-term target of 4 per cent for the first time in several months. Malhotra credited this to a “decisive improvement in the inflation outlook” driven by lower food prices. However, he cautioned that global uncertainties and potential weather-related supply disruptions could still impact price stability in the coming months.

“As before, we shall remain agile and decisive in our response and put in place policies that are clear, consistent, credible, and in the best interest of the economy,” Malhotra asserted.

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