Electric two-wheeler manufacturer Ather Energy has taken another major step in strengthening its growth plans after its Board approved a ₹1,200 crore preferential capital raise, bringing together support from the Government-backed India-Japan Fund, Hero MotoCorp and the company’s founders. The proposed fundraising, subject to shareholder approval forms part of Ather Energy’s broader ₹2,500 crore capital-raising programme announced earlier this year. The fresh capital is expected to support the company’s expansion plans, product development and long-term growth in India’s fast-evolving electric vehicle market.
According to the company’s regulatory filing, approximately ₹200 crores will be invested by the India-Japan Fund, managed by the National Investment and Infrastructure Fund (NIIF), through an allotment of equity shares. The remaining ₹1,000 crores will be raised through convertible warrants issued to Hero MotoCorp and Ather Energy’s Co-Founders, Tarun Mehta and Swapnil Jain.
Hero MotoCorp, Ather Energy’s largest shareholder will subscribe to the majority of the warrants, reinforcing its long-term commitment to the Bengaluru-based electric vehicle manufacturer. The founders will also participate in the fundraising by investing alongside the strategic investors.
Also Read: https://webnewsaddiction.com/montra-electric-deploys-65-rhino-electric-trucks/
Funding Structure
As part of the preferential issue:
- India-Japan Fund will invest approximately ₹200 crores through equity shares.
- Hero MotoCorp will subscribe to convertible warrants worth nearly ₹960 crores.
- Ather Energy’s founders will jointly invest ₹40 crores through convertible warrants.
The warrants can be converted into equity shares within 18 months, with investors paying 25% upfront and the remaining amount at the time of conversion.
Part of a Larger Growth Strategy
The latest fundraising represents the first phase of Ather Energy’s previously announced ₹2,500 crores capital raise.
Earlier, the company had approved raising:
- ₹1,500 crores through a Qualified Institutional Placement (QIP)
- ₹1,000 crores through a preferential issue and other permitted fundraising routes
The current proposal executes the preferential portion of that plan.
Government Participation Signals Confidence
The participation of the Government-backed India-Japan Fund is viewed as another positive signal for India’s growing electric mobility ecosystem. The India-Japan Fund was established jointly by the Government of India and the Japan Bank for International Cooperation (JBIC) to support strategic investments across sectors including manufacturing, clean energy and infrastructure. Its participation alongside Hero MotoCorp highlights continued investor confidence in India’s electric vehicle sector as manufacturers expand production capacity, strengthen technology capabilities and introduce new products.
Competition in India’s EV Market
India’s electric two-wheeler market continues to witness strong competition among manufacturers, including Ather Energy, Ola Electric, TVS Motor and Bajaj Auto. The fresh capital is expected to support Ather Energy’s future growth initiatives as competition intensifies and companies continue investing in product innovation, charging infrastructure and retail expansion.
A Positive Signal for India’s EV Industry
The proposed fundraising is significant not only because of its size but also because it brings together support from a Government-backed investment fund, an established automotive company and the founders themselves. As India’s EV industry enters its next phase of growth, access to long-term capital will remain an important factor in helping manufacturers expand production, strengthen research and development, and scale operations across the country.
