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Highlights
Ather Energy Secures Funding of Rs 1,200 Crore
Ather Energy, a prominent electric two-wheeler manufacturer, has successfully approved a preferential share issuance amounting to Rs 1,200 crore. This includes a substantial commitment from existing investor Hero MotoCorp, which has pledged nearly Rs 960 crore, alongside the India-Japan Fund (IJF) investing Rs 200 crore, as revealed in a recent stock exchange filing.
The India-Japan Fund (IJF) operates as a bilateral private equity fund, supported by the Government of India and the Japan Bank for International Cooperation (JBIC). It is managed by the National Investment and Infrastructure Fund (NIIF).
The board of Ather Energy has approved the issuance of 16.26 lakh equity shares to the NIIF-managed India-Japan Fund at a price of Rs 1,230 per share, totalling Rs 200 crore. Additionally, Ather plans to issue 79.36 lakh convertible warrants valued at Rs 1,000 crore to Hero MotoCorp, as well as to co-founders Tarun Mehta and Swapnil Jain.
Warrant Subscription Breakdown
From the total warrant issuance, Hero MotoCorp is set to subscribe to 76.19 lakh warrants for Rs 960 crore, while both Mehta and Jain will each invest Rs 20 crore through 1.58 lakh warrants each. The warrants are priced at Rs 1,260 each and offer conversion into equity shares within 18 months of allotment. Investors are required to pay 25% of the issue price upfront, with the remainder due at the time of conversion.
Post-allotment, upon full dilution, Hero MotoCorp’s stake in Ather Energy will increase from 29.48% to 30.68%. Additionally, the holding of the India-Japan Fund will rise from 5.75% to 6.02%. The shareholding for founders Tarun Mehta and Swapnil Jain will remain at 4.85% each.
Recent Developments in Investment
This update follows Hero MotoCorp’s recent decision to approve an added investment of up to Rs 1,000 crore in Ather’s proposed Rs 2,500 crore qualified institutional placement (QIP). On Wednesday, Ather Energy reach an all-time high of Rs 1,313.8 before settling at Rs 1,299 on the NSE. At this closing price, the electric vehicle manufacturer has achieved a market capitalisation of Rs 49,792 crore.
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