Electric two-wheeler manufacturer Ather Energy has secured board approval to raise Rs 1,200 crore through a preferential issue of equity shares and convertible warrants, with participation from the Government of India, Hero MotoCorp, and the company’s founders. The fundraising comes weeks after Ather announced plans to raise up to Rs 2,500 crore to accelerate expansion, product development, and manufacturing capacity.
The Centre will invest Rs 200 crore in Ather through the India-Japan Fund (IJF), marking a significant government-backed investment in India’s electric mobility ecosystem. Managed by the National Investment and Infrastructure Fund (NIIF), the India-Japan Fund is a $600-million bilateral fund established by the Government of India and the Japan Bank for International Cooperation (JBIC) to support sustainable infrastructure and climate-focused investments.
Meanwhile, Hero MotoCorp, already Ather Energy’s largest shareholder, will invest Rs 960 crore through convertible warrants, reaffirming its long-term commitment to the Bengaluru-based EV manufacturer. Co-founders Tarun Mehta and Swapnil Jain will also participate in the fundraising by investing Rs 20 crore each.
The capital raise is expected to support Ather’s next phase of growth, including investments in research and development, new product launches, manufacturing expansion, technology capabilities, and strengthening its retail and charging infrastructure. The company had previously disclosed plans to raise up to Rs 2,500 crore as it scales operations in India’s increasingly competitive electric two-wheeler market.
According to the company’s regulatory filings, the preferential allotment will comprise equity shares issued to the India-Japan Fund and convertible warrants issued to Hero MotoCorp and the founders. The warrants can be converted into equity shares within the prescribed timeline under applicable regulations, with a portion of the subscription amount payable upfront and the balance at the time of conversion.
FAQs
1. Why is the Indian government investing in Ather Energy?
The Indian government is investing ₹200 crore in Ather Energy through the India-Japan Fund to support India’s electric mobility ecosystem, promote clean transportation, and encourage the growth of sustainable technology companies.
2. How much is Hero MotoCorp investing in Ather Energy?
Hero MotoCorp will invest ₹960 crore in Ather Energy through convertible warrants as part of the company’s ₹1,200-crore preferential fundraise, reinforcing its long-term partnership with the EV manufacturer.
3. What will Ather Energy use the fresh funds for?
Ather Energy plans to use the capital to expand manufacturing capacity, strengthen research and development, launch new products, enhance technology capabilities, and grow its retail and charging infrastructure across India.
4. What is the India-Japan Fund?
The India-Japan Fund is a $600-million investment fund managed by the National Investment and Infrastructure Fund (NIIF) and backed by the Government of India and the Japan Bank for International Cooperation (JBIC). It focuses on infrastructure and sustainability-led investments.
5. What is Ather Energy’s total fundraising plan?
Ather Energy has approved raising up to ₹2,500 crore. The latest ₹1,200-crore preferential issue is part of this broader fundraising strategy to support the company’s next phase of growth and expansion in India’s electric vehicle market.
