The fundraising initiative includes a QIP of equity shares totaling up to ₹1,500 crore, which will be conducted in multiple tranches, pending regulatory and shareholder approvals. This decision was made by the company’s board of directors during its meeting on June 12.
Additionally, the board sanctioned the raising of up to ₹1,000 crore through equity shares, FCCBs, or other eligible securities convertible into equity shares. This issuance may occur via allowable methods such as a preferential issue, rights issue, or any other approach permitted under the law, in one or more tranches.
Also Read: Ather Energy shares surge 6%, CEO says rare earth issue behind us
The company indicated that the securities could be denominated in rupees or one or more foreign currencies. To manage this process, the board established a Fundraising Committee to oversee all aspects of the proposed fundraising.
Ather Energy also approved a postal ballot notice to obtain shareholders’ consent through e-voting for the proposed QIP of up to ₹1,500 crore via a special resolution. This postal ballot notice will be filed with the stock exchanges separately.
The company stated that specifics such as investors, issue price, number of securities, listing venue, conversion terms, and other relevant details will be determined by the board at the appropriate time, in line with applicable regulations.
Also Read: Ather Energy enters insurance segment with new subsidiary Ather Insurance
Earlier today, Tarun Mehta, co-founder and CEO of Ather Energy, mentioned, “We have surpassed 90% utilization, and will need to explore ways to exceed 100% in the upcoming weeks!” he added in a post on the microblogging platform X on June 12.
Ather ranks as the third-largest player by market share among electric two-wheeler manufacturers, following TVS Motor and Bajaj Auto. The Bengaluru-based company sold 2.62 lakh units in the previous financial year ending March 2026, marking a 69% increase compared to FY25.
A significant portion of sales occurred between January and March, following the outbreak of conflict in West Asia, which drove crude oil prices above $120 a barrel. The stock has risen over 227% in the past year.
Also Read: Ather Energy Q4 Results: Net loss narrows, revenue jumps 74% but stock slips
Currently, Ather is working to establish its third facility in Chhatrapati Sambhajinagar, Maharashtra, for which it has invested ₹927 crore from the nearly ₹3,000 crore raised through last year’s initial public offering. “The new factory can’t become operational quickly enough,” Mehta noted.
Electric vehicles account for less than 10% of India’s total two-wheeler sales, which exceeded 20 million in the financial year ending March 2026. The recent surge in demand may prompt companies to consider increasing their production capacity, which could take 18 to 24 months to initiate.
Shares of Ather Energy Ltd closed at ₹1,028.15, gaining ₹0.30, or 0.029%, on the BSE.
