Electric two-wheeler manufacturer Ather Energy has approved a ₹1,200 crore preferential issue, strengthening its capital base as it continues to expand its presence in India’s fast-growing electric mobility market. The investment is led by existing investor Hero MotoCorp, alongside the India-Japan Fund (IJF) and the company’s co-founders.
According to the company’s stock exchange filing, Hero MotoCorp will invest ₹960 crore, while the India-Japan Fund, managed by the National Investment and Infrastructure Fund (NIIF), will invest ₹200 crore. Ather’s co-founders Tarun Mehta and Swapnil Jain will each invest ₹20 crore, taking the total capital raise to ₹1,200 crore.
The India-Japan Fund is a bilateral private equity fund backed by the Government of India and the Japan Bank for International Cooperation (JBIC) and managed by NIIF.
As part of the transaction, Ather will issue 16.26 lakh equity shares to the India-Japan Fund at ₹1,230 per share, amounting to ₹200 crore. Additionally, the company will issue 79.36 lakh convertible warrants worth ₹1,000 crore to Hero MotoCorp and the founders.
Hero MotoCorp will subscribe to 76.19 lakh warrants valued at ₹960 crore, while Tarun Mehta and Swapnil Jain will each subscribe to 1.58 lakh warrants worth ₹20 crore. The warrants have been priced at ₹1,260 each and are convertible into equity shares within 18 months from the date of allotment. Investors will pay 25% of the issue price upfront, with the remaining amount payable upon conversion.
Following the allotment on a fully diluted basis, Hero MotoCorp’s stake in Ather Energy will increase from 29.48% to 30.68%, while the India-Japan Fund’s holding will rise from 5.75% to 6.02%. The shareholding of founders Tarun Mehta and Swapnil Jain will stand at 4.85% each.
The development comes shortly after Hero MotoCorp approved an additional investment of up to ₹1,000 crore in Ather Energy’s proposed ₹2,500 crore Qualified Institutional Placement (QIP), reflecting continued confidence in the company’s long-term growth strategy.
Investor optimism has also been reflected in the public markets. Ather Energy recently touched an all-time high of ₹1,313.80 before closing at ₹1,299 on the NSE, giving the company a market capitalisation of approximately ₹49,792 crore.
The fresh capital is expected to further strengthen Ather Energy’s balance sheet as it continues to invest in innovation, scale operations, and capitalize on the growing demand for electric two-wheelers in India.
Source: Based on publicly available reporting, with additional editorial adaptation and analysis.