Key facts
- Ather Energy's board approved a fundraising plan to secure up to Rs 2,500 crore.
- The fundraising will include Rs 1,500 crore through a Qualified Institutional Placement (QIP).
- An additional Rs 1,000 crore may be raised via instruments such as equity shares, FCCBs, preferential issue, or rights issue.
- The capital infusion is intended to support manufacturing capacity expansion, product development, and distribution.
- Ather Energy has doubled its retail footprint and service centers during FY26.
Electric two-wheeler manufacturer Ather Energy's board has approved a significant fundraising initiative, aiming to secure up to Rs 2,500 crore. This capital will be raised through a combination of a Rs 1,500 crore Qualified Institutional Placement (QIP) and an additional Rs 1,000 crore from various equity-linked instruments, including equity shares, foreign currency convertible bonds (FCCBs), preferential issue, or rights issue.
The company plans to utilize these funds to bolster its balance sheet, invest in expanding manufacturing capacity, enhance product development, and broaden its distribution network amidst increasing competition in the electric two-wheeler market.
Ather Energy has recently reported strong operational metrics, doubling its retail footprint to 700 stores and more than doubling its service centers during FY26. The company sold approximately 83,000 vehicles in the March quarter, indicating robust demand across different regions.
This fundraising follows a similar move by rival Ola Electric, which raised Rs 780 crore through a QIP earlier in June, with participation from several mutual funds.