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Ather Energy Board Approves ₹1,200 Crore Preferential Raise Led by Hero MotoCorp

Planned to fund Factory 3.0 capacity growth to 1.42 million units, the raise remains conditional on shareholder and regulator approval.

Overview

  • Ather’s board approved the preferential issue on Wednesday to raise up to ₹1,200 crore through equity and convertible warrants as part of a broader ₹2,500 crore capital plan.
  • Hero MotoCorp will subscribe to about ₹960 crore via 76.19 lakh convertible warrants, the India-Japan Fund will take roughly ₹200 crore of equity, and founders Tarun Mehta and Swapnil Jain will each buy small warrant parcels.
  • Warrants are priced with conversion terms that require 25% payment on subscription and conversion within the prescribed period, and full conversion would lift Hero’s holding to about 30.68% from 29.48% on a fully diluted basis.
  • Ather also opened a Qualified Institutional Placement (QIP) with a floor price of ₹1,169.70 per share, and the stock jumped roughly 9% intraday to record highs after the funding news.
  • Company filings say proceeds will support the Factory 3.0 expansion in Chhatrapati Sambhajinagar, R&D, marketing and debt reduction, but all transactions are subject to shareholder and regulatory clearances and standard timing conditions.