Adding to a string of funding related disclosures today, Ather Energy has now opened a qualified institutional placement (QIP) to raise more capital
The company has set the floor price at ₹1,169.70 per equity share, a significant discount from today’s closing price of ₹1,298
The QIP is part of Ather’s previously announced plan to raise up to ₹2,500 Cr. Of this, the company had shared plans to raise ₹1,500 Cr via QIP, while the remaining capital will come through other equity-linked instruments
Adding to a string of funding related disclosures today, Ather Energy has now opened a qualified institutional placement (QIP) to raise more capital. The company has set the floor price at ₹1,169.70 per equity share, a significant discount from today’s closing price of ₹1,298.
The company may offer institutional investors a discount of up to 5% on the floor price, with the final issue price to be determined in consultation with the book-running lead managers.
The issue follows the board’s approval in June and a special resolution passed by shareholders through a postal ballot on July 14.
The purpose of the QIP is to repay or pre-pay borrowings availed by the company, invest in R&D and fuel marketing initiatives.
The QIP is part of Ather’s previously announced plan to raise up to ₹2,500 Cr. Of this, the company had shared plans to raise ₹1,500 Cr via QIP, while the remaining capital will come through other equity-linked instruments.
The plan materialised today after the company’s board also approved a preferential issue of up to ₹1,200 Cr.
As part of the transaction, Hero MotoCorp will invest about ₹960 Cr through convertible warrants, while the India-Japan Fund, through National Investment and Infrastructure Fund (NIIF), will invest ₹200 Cr to lap up equity shares.
Cofounders Tarun Mehta and Swapnil Jain will also invest ₹20 Cr each for warrants. Subject to full conversion of the warrants, Hero MotoCorp’s stake in Ather will increase to 30.68% from 29.48%.
The funding spree for Ather comes at a time when competition in the E2W space is heating up. With legacy players TVS Motor and Bajaj Auto maintaining their lead, new-age tech company Ola Electric also previously raised fresh capital through a QIP to support its operations.
Ather is also raising fresh investments while managing to narrow its net loss and improve its top line performance. In Q4 FY26, the company narrowed its net loss by 57.2% YoY to ₹100.2 Cr, while operating revenue jumped 73.7% to ₹1,174.7 Cr.
The company also significantly expanded its physical network during FY26, ending the year with 700 experience centres, up from 351 a year earlier. Its service network grew to 548 centres, while its public fast-charging network crossed 6,000 charging points across the country.
Shares of Ather Energy ended today’s trading session 7.9% higher at ₹1,298 on the BSE.
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