Ather Energy's Rs 1,300-crore QIP subscribed over eight times: sources

Electric two-wheeler maker Ather Energy's Rs 1,300-crore qualified institutional placement (QIP) has been subscribed more than eight times, attracting bids worth over Rs 10,000 crore from domestic and foreign institutional investors, according to people aware of the matter.

The QIP, which opened on Wednesday, drew interest from several marquee domestic mutual funds and foreign institutional investors (FIIs), the sources added.

The company launched the issue at a floor price of Rs 1,169.70 per share, 10% lower than its share price of Rs 1,298 on Wednesday.


Alongside the QIP, Ather is raising Rs 1,200 crore through a preferential allotment from existing investors, taking its total capital raise to Rs 2,500 crore.

People familiar with the matter said all investors participating in the preferential issue, including Hero MotoCorp and the founders, are investing at a price around 7% above the QIP floor price.

The stock closed down 2.5% at Rs 1,264.65 on the BSE on Thursday.

Source: Google Finance

Hero MotoCorp, Ather's largest shareholder, will invest about Rs 960 crore through convertible warrants, while the India-Japan Fund (IJF) will invest in equity shares worth Rs 200 crore. Cofounders Tarun Mehta and Swapnil Jain will each invest Rs 20 crore 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-focussed sectors such as clean energy, electric mobility, resource efficiency, and sustainable infrastructure.

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.

In the March quarter, Ather's net loss narrowed 57.2% year-on-year to Rs 100.2 crore, while operating revenue rose 73.7% to Rs 1,174.7 crore. During FY26, vehicle sales increased 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.