Ather Energy's ₹1,300 crore Qualified Institutions Placement (QIP) has received bids worth over ₹10,000 crore, representing more than 8 times the issue size, according to sources from The Economic Times. The QIP, which opened on Wednesday, July 15, was launched at a floor price of ₹1,169.70 per equity share, which is 10% lower than the company's share price of ₹1,298 on Wednesday. The equity dilution from the issue is expected to be 2.76% of the post-issue equity share capital. The issue has seen participation from leading long-only domestic institutional investors (DIIs) and foreign institutional investors (FIIs), with the QIP drawing interest from several marquee domestic mutual funds and foreign institutional investors (FIIs). As per CNBC TV18, the indicative QIP launch price range is ₹1,200-₹1,220 per share, representing a 5.9%-7.4% discount to the last closing price.
Ather Energy's board of directors approved a significant fund raise of ₹1,200 crore at the conclusion of its board meeting on Wednesday, July 15, 2026. The board approved the issue of 1.63 million equity shares to the India-Japan Fund at ₹1,230 per share and 79.36 lakh convertible warrants to promoters at ₹1,260 per warrant. Alongside the QIP, Ather is raising ₹1,200 crore through a preferential allotment from existing investors, taking its total capital raise to ₹2,500 crore. As per The Economic Times, 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 India-Japan Fund is an existing shareholder in the company, and the convertible warrants are being issued to Hero MotoCorp, Tarun Mehta and Swapnil Jain. Shares of Ather Energy are trading 8% higher on Wednesday at ₹1,298, with the stock reaching an intraday high of ₹1,318 and crossing the market capitalization of ₹50,000 crore. With today's move, the stock has extended its year-to-date advance to 76%.
The Government of India, through the India-Japan Fund (IJF), will invest nearly ₹200 crore in Ather Energy as part of the electric scooter maker's ₹1,200-crore preferential fundraise. The investment will be made through the India-Japan Fund, a $4,900-crore bilateral fund launched in 2023 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. Under the fundraising plan, the India-Japan Fund will subscribe to 16.26 lakh equity shares at ₹1,230 apiece, investing ₹199.99 crore. The remaining ₹1,000 crore will come through convertible warrants issued to existing promoter-investors, with Hero MotoCorp investing ₹960 crore and Ather co-founders Tarun Mehta and Swapnil Jain each investing ₹20 crore. The fundraising, which is subject to shareholder and regulatory approvals, will be carried out through a preferential issue of equity shares and convertible warrants, with the warrants convertible into equity shares within 18 months of allotment.
The fundraising comes as Ather Energy reports improving financial performance with net loss narrowing 57.2% year-on-year to ₹100.2 crore in the fourth quarter of FY26, while operating revenue rose 73.7% to ₹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. According to The Economic Times, 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. Market participants view the founders' decision to invest fresh capital alongside institutional and strategic investors as a strong signal of confidence in the company's long-term growth prospects.
In a significant strategic development, Ather Energy announced the launch of its first mass market electric scooter from the new EL platform, marking its entry into the competitive mass-market scooter segment. According to NSE filings, Ather's upcoming new 'mass-market' scooter will cost in the range of ₹1 lakh to ₹1.25 lakh as the company plans to expand its market share in the Indian two-wheeler EV market. The EL platform, Ather's first all-new vehicle architecture since the 450, is designed for scalability and cost efficiency, enabling the company to target the ₹1 lakh–₹1.25 lakh price segment while expanding its future product portfolio. The company is scheduled to launch the new scooter at its Ather Community Day on August 29, 2026, in Bengaluru, where it will unveil the first scooter based on its new EL platform. The event, themed "A New Dawn of Magic," will also showcase new innovations in technology, charging infrastructure, and the Ather ecosystem aimed at enhancing the ownership experience. So far, Ather's cheapest scooter, Ather Rizta, costs ₹1,31 lakh ex-showroom, as per official data.
Following the completion of the fund raise, Ather Energy's shareholding structure has undergone significant changes. According to the latest disclosures, Ather Energy's promoters and promoter groups held 39.96% stake in the firm while public shareholders held 60.04% stake at the end of the June quarter. Promoters Swapnil Jain and Tarun Mehta held 5.03% stake each in the company, while promoter groups Jain Family Trust and Swapnil Jain Family Trust held 0.17% stake each. The Mehta Family Trust and Turn Swarna Family Trust held 0.15% and 0.14% stake, respectively. Hero MotoCorp's stake has increased to 30.68% from 29.48%, making it the largest promoter group, while the India-Japan Fund's holding has risen to 6.02% from 5.75%. The co-founders' stake has dropped to 4.85% each from 4.93% following their investment through convertible warrants. The stock closed down 2.5% at ₹1,264.65 on the BSE on Thursday, as per The Economic Times. The shareholding structure will continue to evolve as the fund raise is completed and regulatory approvals are obtained. According to NSE data, Ather Energy shares have gained 309% to their current record high since listing with the shares trading on the Nifty Smallcap 100 index. The stock has delivered more than 274% returns to investors in the last one year period and over 74% gains on a year-to-date basis in the current year. The company is currently India's third-largest electric two-wheeler maker by registrations, behind TVS Motor and Bajaj Auto.
