Ather raises ₹1,200 crore preferential issue, lifting total fundraise to ₹2,500 crore
What's the deal? Ather Energy shareholders approved a ₹1,200 crore preferential issue, with 97.72% of votes cast in favour at an extraordinary general meeting. Combined with the recently completed ₹1,300 crore qualified institutional placement, the issue takes Ather's total fundraise to around ₹2,500 crore ($144 million).
Who's investing? Hero MotoCorpDealroom has a profile for this one. Try Dealroom → will invest around ₹960 crore, while strategic investor India-Japan Fund will invest ₹200 crore. Co-founders Tarun MehtaDealroom has a profile for this one. Try Dealroom → and Swapnil JainDealroom has a profile for this one. Try Dealroom → will invest ₹20 crore each.
The terms: Hero MotoCorp and the co-founders will invest through warrants at ₹1,260 apiece, a 7.2% premium to the ₹1,175.74 floor price. India-Japan Fund will subscribe to equity shares at ₹1,230, a 4.6% premium to the floor price.
By the numbers: Ather delivered 263,000 scooters in FY26, while total income rose 66% year-on-year to ₹3,823 crore. The company turned EBITDA positive in the June quarter of FY27.
What's the endgame? The fresh capital will strengthen manufacturing capacity, expand product and technology capabilities and bolster the balance sheet. Ather's new facility at AURIC in Chhatrapati Sambhaji Nagar is on track for commissioning in the third quarter of FY27, adding 500,000 units of annual capacity.
Why now? Ather is expanding its product portfolio through its EL platform. The first product built on it, the Ather Konarc, is scheduled to launch on 29 August at Ather Community Day.
The signal: At roughly $144 million, the raise ranks in the top third of comparable rounds, underscoring investor confidence in an electric-vehicle maker moving towards profitability as it scales output.
Read more: CNBC-TV18
Image credit: MSVG
