Ather Energy's shareholders have approved a ₹1,200 crore preferential issue with 97.72% of votes cast in favour at an Extraordinary General Meeting, according to an exchange filing on Thursday. Combined with the company's recently completed ₹1,300 crore Qualified Institutional Placement (QIP), this brings the total fundraise to approximately ₹2,500 crore. The QIP had attracted bids worth more than ₹10,000 crore from leading domestic and global institutional investors, demonstrating strong investor confidence in the electric scooter manufacturer's growth prospects.
The preferential issue features participation from Ather's promoter and strategic investors, with Hero MotoCorp investing around ₹960 crore and India-Japan Fund investing ₹200 crore. Co-founders Tarun Mehta and Swapnil Jain will each invest ₹20 crore through warrants at ₹1,260 per share, representing a 7.2% premium to the floor price of ₹1,175.74. Strategic investor India-Japan Fund will subscribe to equity shares at ₹1,230 per share, a 4.6% premium to the floor price. This strategic participation from established automotive players and institutional investors positions Ather for significant growth in the competitive electric mobility sector.
The fundraise comes as Ather continues to scale operations amid strong demand and improving financial performance. The company delivered 2.63 lakh scooters in FY26, while total income rose 66% year-on-year to ₹3,823 crore. Ather also turned EBITDA positive in the June quarter of FY27, marking an improvement in its operating performance. The fresh capital will be used to strengthen manufacturing capacity, expand product and technology capabilities, and bolster the company's balance sheet as it pursues its electric scooter ambitions.
Ather's upcoming manufacturing facility at AURIC in Chhatrapati Sambhaji Nagar is on track for commissioning in the third quarter of FY27. The facility is expected to add five lakh units of annual production capacity, significantly expanding the company's manufacturing footprint. The company is also expanding its product portfolio through its EL platform, with the first product built on the platform, Ather Konarc, scheduled to be launched on August 29 at Ather Community Day. This product launch represents a key milestone in Ather's strategy to diversify its product range and strengthen its position in the competitive electric two-wheeler market.
