Ather Energy’s Fundraising Initiative

Ather Energy, an electric two-wheeler manufacturer, has revealed plans to raise as much as Rs 2,500 crore through a combination of funding methods including qualified institutional placement (QIP), preferential allotment, rights issue, foreign currency convertible bonds (FCCBs), and other eligible securities, as reported in a stock exchange filing.

Details of the Fundraising Plan

The board of Ather has approved the raising of up to Rs 1,500 crore via a QIP of equity shares, which may occur in one or more tranches. Additionally, an extra Rs 1,000 crore may be raised through equity shares, FCCBs, or other convertible securities using permissible routes such as preferential allotment and rights issue.

Establishment of a Fund Raise Committee

To oversee the fundraising efforts, Ather has established a Fund Raise Committee responsible for managing aspects related to the proposed capital increase. The company intends to obtain shareholder approval for the QIP portion via a postal ballot, with further details to follow.

Flexible Fundraising Options

This fundraising strategy allows Ather to maintain various avenues for raising capital, providing the flexibility to engage both domestic and international investors in response to changing market conditions. Pricing, investor details, and issuance timelines will be outlined at a later date.

Improving Financial Performance

The announcement of the fundraising initiative coincides with a positive shift in Ather’s financial performance. In the fourth quarter of FY26, the company’s operating revenue surged by 74% year-on-year to reach Rs 1,175 crore, up from Rs 676 crore in the previous year. Additionally, Ather’s net loss decreased by 57% to Rs 100 crore, highlighting the benefits of increased electric two-wheeler sales, which have driven revenue growth faster than the rise in expenses.

Market Context

Ather’s fundraising strategy mirrors a similar initiative by competitor Ola Electric, which raised Rs 780 crore earlier this month through a Qualified Institutional Placement (QIP). This issue was oversubscribed by 56% compared to its initial target of Rs 500 crore.