India's Ather Energy to raise $125 million via share issue, warrants

Ather Energy

15/07/2026 11:18

    July 15 (Reuters) - Electric two-wheeler maker Ather Energy ATHR.NS on Wednesday said its board approved a 12 billion rupee ($124.70 million) capital raise via preferential issue of shares and convertible warrants. 
Shares of the company jumped by about 8% to 1,292 rupees apiece.
Here are more details:

        The fundraise will be backed entirely by existing investors, led by Hero MotoCorp HROM.NS, the India-Japan Fund and Ather co-founders.
      
Ather will issue 1.63 million equity shares to the India-Japan Fund, a joint government-backed investment vehicle managed by the National Investment and Infrastructure Fund, at 1,230 rupees apiece.
Hero MotoCorp will invest 9.60 billion rupees through warrants, Ather disclosed in an exchange filing.
The motorcycle-maker and Ather's largest shareholder, on Tuesday, had approved an investment of up to 10 billion rupees in the company.

        Ather co-founders Tarun Mehta and Swapnil Jain will each invest about 200 million rupees through convertible warrants.
Following the issue, Hero MotoCorp's stake will increase to 30.68% from 29.48%, while India-Japan Fund's holding will rise to 6.02% from 5.75%. The co-founders' stake drops to 4.85% each from 4.93%.
While Ather Energy did not specify how they would deploy the proceeds, EV makers typically require significant capital for new product development, battery technology, and expanding manufacturing, especially at a time when competition in the sector is growing.
Fundraise coincides with a period of heightened action in India’s electric two-wheeler sales, with EV penetration crossing 10% for the first time in June, according to an auto dealers’ body, as fuel price hikes and regulatory push act as tailwinds for the segment.
Ather is the third-largest Indian electric two-wheeler maker as of June, according to Vahan data.
($1 = 96.2325 Indian rupees)

(Reporting by Saikeerthi in Bengaluru; Editing by Harikrishnan Nair)
((Saikeerthi@thomsonreuters.com; (+91) 8296756080))