Ather Energy’s board has approved a proposal to raise up to ₹2,500 crore through a qualified institutional placement (QIP) and other equity-linked instruments, according to a filing with the exchanges. The company plans to issue securities worth ₹1,500 crore via QIP, with the remaining ₹1,000 crore to be raised through preferential issue, rights issue, equity shares, or foreign currency convertible bonds (FCCBs). This marks Ather’s first fundraise since its listing last year, aimed at supporting its next growth phase.
The board has formed a committee to manage all matters related to the proposed fundraise. This decision follows Ather’s recent announcement to consider fresh funding to boost investments in manufacturing, product development, and distribution. The move comes amid intensifying competition in the electric two-wheeler segment, where legacy players TVS Motor and Bajaj Auto hold 26% and 23% market shares respectively, while Ola Electric has increased its registrations by 22% to 15,139 units last month.
The fundraise is significant as Ather seeks to strengthen its position in the growing electric vehicle market, which is witnessing aggressive expansion from established and new entrants. Ola Electric recently raised ₹780 crore via QIP to support its operations, highlighting the competitive environment. Ather’s planned capital infusion is expected to help it scale production and enhance its product offerings to compete with dominant players in the sector.
Ather Energy’s board approval to raise ₹2,500 crore was disclosed in a filing this week, with the company constituting a committee to oversee the process, according to inc42.com.