Ather raises Rs 1,200 cr, launches Rs 1,500 cr QIP
Electric scooter maker Ather Energy’s board on Wednesday approved a Rs 1,200-crore raise from existing investors Hero MotoCorp, the India-Japan Fund, and founders Tarun Mehta
Electric scooter maker Ather Energy’s board on Wednesday approved a Rs 1,200-crore raise from existing investors Hero MotoCorp, the India-Japan Fund, and founders Tarun Mehta and Swapnil Jain. The investment is part of a broader Rs 2,700-crore financing plan, which includes a Rs 1,500-crore qualified institutional placement (QIP), as per regulatory filings. The board approved the QIP floor price.Next phase of expansionThis was set at Rs 1,169.70 per share, about 10% lower than Wednesday’s closing price of Rs 1,298.As part of the preferential allotment, the India-Japan Fund (IJF)—a bilateral investment vehicle managed by state-owned Investment and Infrastructure Fund (NIIF)—will invest Rs 200 crore in equity, Ather said in a regulatory filing.132424603Hero MotoCorp, Ather's promoter, will infuse Rs 960 crore, while Mehta and Jain, who are also promoters, will inject Rs 20 crore each. Hero and the founders will subscribe through convertible warrants.Launched in 2023, the Rs 4,900-crore IJF was set up by the Indian government and the Japan Bank for International Cooperation (JBIC) for investing in climate-focused sectors such as clean energy, electric mobility, resource efficiency and sustainable infrastructure.
JBIC owns 51% and the government, 49%. IJF first invested in Ather in 2024, while NIIF has been an investor in the company since May 2022.Following the preferential allotment, Hero MotoCorp's stake in Ather will increase to 30.68% from 29.48%, while IJF's shareholding will rise to 6.02% from 5.75%. Mehta and Jain will each hold 4.85%.The capital raise is subject to shareholder approval and comes just over a year after Ather secured Rs 2,626 crore through an initial public offering (IPO).NIIF sold shares worth Rs 85 crore during Ather's May 2025 IPO, while Mehta and Jain trimmed their holdings by selling stakes worth Rs 31 crore each. Hero MotoCorp and the India-Japan Fund didn’t sell any shares in the IPO. NIIF, however, offloaded 3% stake worth Rs 541 crore last November through open market transactions.Ather said the fresh funds will support its next phase of growth, including expanding manufacturing capacity, strengthening research and development, launching new products, and rolling out its mass-market EL scooter platform.The company is also expanding capacity with a new 98-acre facility in Maharashtra, where it plans to invest more than Rs 2,000 crore.
The first phase of the plant is expected to add an annual capacity of 500,000 units.Shares of Ather closed 7.9% higher at Rs 1,298 apiece on the BSE Wednesday, nearly four times the IPO price of Rs 321.132414293Source: Google FinanceNew growth areasThe fundraise follows rival Ola Electric's Rs 780 crore QIP in June, which saw participation from investors including SBI Mutual Fund, Motilal Oswal Mutual Fund and Invesco.Unlike Ola, which has been grappling with slowing sales and profitability pressures, Ather is approaching investors after a year of strong operating performance.The company reported a 66% surge in vehicle sales in FY26. It recorded a market share of 17.4% in June, driven largely by the success of its Rizta family scooter. During the year, Ather doubled its retail footprint to 700 stores and more than doubled the service network.Ather is the country's third-largest electric two-wheeler maker by sales, behind TVS Motor and Bajaj Auto. The company currently manufactures 35,000 vehicles on a monthly basis, running at fully utilised capacity.
The BriefWire