Ather Energy Limited (NSE:ATHERENERG) informed the stock exchanges on 15 July 2026 that its Board of Directors, at a meeting held the same day, approved a preferential issue to raise up to Rs 1,200 crore. The fundraise involves the issuance of equity shares to India-Japan Fund and convertible warrants to Hero MotoCorp Limited and two individual promoters, subject to shareholder and regulatory approvals.
Key Highlights
- The Board approved raising up to Rs 1,200 crore through a preferential issue of equity shares and convertible warrants on 15 July 2026, under Regulation 30 of the SEBI Listing Regulations.
- India-Japan Fund (IJF), a Category II AIF and existing investor, will be allotted 16,26,016 equity shares at Rs 1,230 per share, aggregating approximately Rs 200 crore.
- Hero MotoCorp Limited, a promoter entity, will receive 76,19,047 convertible warrants at an issue price of Rs 1,260 per warrant, amounting to approximately Rs 960 crore.
- Individual promoters Mr. Tarun Sanjay Mehta and Mr. Swapnil Babanlal Jain will each receive 1,58,730 warrants at Rs 1,260 per warrant, aggregating approximately Rs 20 crore each.
- Each convertible warrant carries the right to subscribe to one equity share of face value Rs 1, with a tenure not exceeding 18 months from the date of allotment.
- An Extraordinary General Meeting (EGM) will be convened to seek shareholder approval via special resolution; the EGM notice will be submitted to the exchanges in due course.
- The Trading Window for designated persons and their immediate relatives remains closed and will reopen as per the company's insider trading code of conduct.
About the Company
Ather Energy Limited is an Indian electric two-wheeler manufacturer headquartered in Bengaluru, Karnataka. The company designs, develops, and manufactures electric scooters along with the supporting charging infrastructure, marketed under the Ather brand. Its product portfolio includes models such as the Ather 450 series. Ather operates its own manufacturing facility and has established a network of experience centres and fast-charging stations, known as Ather Grid, across India. The company is listed on the National Stock Exchange of India under the ticker ATHERENERG and on BSE under scrip code 544397, and operates in the electric vehicle segment of the Indian automobile sector.
Announcement in Detail
The Board of Directors of Ather Energy Limited convened a meeting on 15 July 2026, commencing at 8:00 AM IST and concluding at 2:00 PM IST. At this meeting, the Board considered and approved a preferential issue to raise funds aggregating up to Rs 1,200 crore. The issuance comprises two components: equity shares to be allotted to a non-promoter institutional investor, and convertible warrants to be allotted to promoter entities and individuals, all on a private placement basis in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and the Companies Act, 2013.
Under the first component, 16,26,016 fully paid-up equity shares of face value Rs 1 each will be issued to India-Japan Fund, a Category II Alternative Investment Fund represented and managed by National Investment and Infrastructure Fund Limited, at an issue price of Rs 1,230 per share inclusive of a premium of Rs 1,229 per share, aggregating approximately Rs 200 crore. IJF is described in the filing as an existing investor in the company. Under the second component, 79,36,507 convertible warrants will be issued at a price of Rs 1,260 per warrant inclusive of a premium of Rs 1,259 per warrant. Of these, 76,19,047 warrants will be allotted to Hero MotoCorp Limited, a promoter, amounting to approximately Rs 960 crore, while 1,58,730 warrants each will be allotted to Mr. Tarun Sanjay Mehta and Mr. Swapnil Babanlal Jain, promoters, amounting to approximately Rs 20 crore each.
The filing discloses that each warrant is convertible into one equity share of face value Rs 1 and has a tenure not exceeding 18 months from the date of allotment. The Relevant Date under the SEBI ICDR Regulations is stated to be 15 July 2026. The preferential issue remains subject to approval by shareholders through a special resolution at an EGM, as well as any other applicable statutory and regulatory approvals. The Board separately resolved to convene the EGM, with the formal notice to be filed with the stock exchanges at a later date.
Impact on Investors
Investors will note that the preferential issue, if fully subscribed and all warrants converted, will result in an increase in the total issued and paid-up equity share capital of Ather Energy. The filing provides post-preferential shareholding data on a fully diluted basis: Hero MotoCorp Limited's holding is expected to move from 29.48% to approximately 30.68%, while IJF's holding would increase from 5.75% to approximately 6.02% on the same basis. Mr. Tarun Sanjay Mehta and Mr. Swapnil Babanlal Jain are each shown moving from 4.93% to approximately 4.85% on a fully diluted post-issue basis. These figures are drawn directly from the annexure to the exchange filing and are stated to be computed on the assumption that all warrants are fully converted; actual outcomes may differ if warrants lapse or are partially converted.
The filing also discloses that 25% of the warrant issue price is payable at the time of subscription and allotment, with the remaining 75% payable upon exercise of the conversion option. Warrants not converted within 18 months from the date of allotment shall lapse, and amounts paid on such unconverted warrants shall stand forfeited. Shareholders will observe that the issue requires approval through a special resolution at an EGM, which means the timeline and final structure of the capital raise remain subject to that outcome. Given the scale of the preferential issue and the involvement of promoter allottees, shareholders will want to review the detailed terms in the EGM notice when it is made available to the exchanges.
Sector / Market Context
India's electric two-wheeler segment has seen sustained growth in recent years, with the Society of Indian Automobile Manufacturers (SIAM) reporting increasing registrations of electric two-wheelers as a proportion of overall two-wheeler sales. Policy support through schemes such as the FAME programme and state-level subsidies has contributed to growing adoption. Several manufacturers have expanded their manufacturing capacities and product ranges, intensifying competition in the segment.
Against this backdrop, capital raising by electric vehicle companies to fund operations, manufacturing scale-up, and charging infrastructure expansion has become a recurring feature of the sector. Preferential allotments and institutional participation, including through AIFs and strategic promoter entities, are common fund-raising routes for listed companies under the SEBI ICDR Regulations framework. Ather Energy's decision to tap both an institutional investor and existing promoters through this issue reflects the structure commonly seen in growth-stage listed entities seeking to fund expansion without immediate public offer dilution.