Ather Energy has opened a qualified institutional placement (QIP) to raise capital, setting a floor price of ₹1,169.70 per equity share, below the closing price of ₹1,298. The QIP follows board approval in June and a shareholder postal ballot on July 14. The company aims to raise up to ₹2,500 crore, with ₹1,500 crore targeted through the QIP and the rest via other equity-linked instruments, according to inc42.com.
The final issue price will be decided with book-running lead managers, allowing up to a 5% discount on the floor price for institutional investors. Alongside the QIP, Ather’s board approved a preferential issue of up to ₹1,200 crore. Hero MotoCorp will invest about ₹960 crore via convertible warrants, while the India-Japan Fund, through NIIF, will invest ₹200 crore in equity shares. Cofounders Tarun Mehta and Swapnil Jain will each invest ₹20 crore in warrants, inc42.com reported.
This capital raise aims to repay or pre-pay borrowings, invest in research and development, and support marketing efforts. Hero MotoCorp’s stake will increase to 30.68% from 29.48% upon full conversion of warrants. The move follows Ather’s ongoing funding strategy to strengthen its financial position amid growing competition in the electric vehicle sector, as detailed by inc42.com.
The QIP and preferential issue mark key steps in Ather Energy’s ₹2,500 crore fundraising plan. The company’s board approved the preferential issue and shareholder resolution on July 14, with the final pricing and allotment expected soon, inc42.com stated.