Ather Energy raises Rs 1,300 crore via QIP, allots shares at Rs 1,202 apiece

Electric two-wheeler maker Ather Energy Limited has closed a qualified institutional placement (QIP), raising approximately Rs 1,300 crore by allotting 1,08,15,307 equity shares to eligible institutional buyers at Rs 1,202 per share, the company said in a stock exchange filing on Monday.

The issue price includes a premium of Rs 1,201 over the shares' face value of Rs 1 and is above the floor price of Rs 1,169.70 fixed earlier under Sebi’s capital-raising norms, the company said.

ET had earlier reported that the QIP was subscribed more than eight times, attracting bids worth over Rs 10,000 crore from domestic and foreign institutional investors.


Ather is also raising Rs 1,200 crore from existing investors Hero MotoCorp, the India-Japan Fund, and founders Tarun Mehta and Swapnil Jain, taking the total capitalraise to Rs 2,500 crore.

As part of the preferential allotment, the India-Japan Fund (IJF) will invest Rs 200 crore in equity, while Hero MotoCorp will infuse Rs 960 crore. Mehta and Jain will invest Rs 20 crore each. 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 fundraise comes as Ather ramps up investments in manufacturing, research and development, and new products. The company plans to use the proceeds to expand production capacity, accelerate development of its upcoming EL scooter platform targeted at the mass-market segment, and strengthen its technology capabilities.

Ather is also expanding capacity with a new 98-acre facility in Maharashtra, on which 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.

In the March quarter, Ather's net loss narrowed 57.2% year on year to Rs 100.2 crore, while operating revenue shot up 73.7% to Rs 1,174.7 crore. In FY26, vehicle sales surged 66%, supported by strong demand for its Rizta family scooter and a rapid expansion of its retail network.

The company is currently India's third-largest electric two-wheeler maker by registrations, behind TVS Motor and Bajaj Auto.

The capitalraise comes just over a year after Ather secured Rs 2,626 crore through an initial public offering (IPO). In June, rival Ola Electric raised Rs 780 crore via a QIP, which saw participation from various investors, including SBI Mutual Fund, Motilal Oswal Mutual Fund and Invesco.