Ather Energy Limited’s board of directors, at its meeting on June 12, 2026, approved a proposal to raise up to Rs 2,500 crore through the issuance of securities, the Bengaluru-based electric two-wheeler maker disclosed to stock exchanges under Regulation 30 of the SEBI Listing Regulations.
The fundraising comes just over a year after the company’s stock market debut and reflects its push to fund a significant capacity build-out as EV adoption accelerates across India.
Who is Ather Energy
Founded by Tarun Mehta and Swapnil Jain, Ather Energy is headquartered in Bengaluru. The company’s product ecosystem includes Ather Grid, a public fast-charging network for two-wheelers, and Atherstack, a proprietary software platform. Manufacturing is carried out at the Hosur factory in Tamil Nadu, which had an installed annual capacity of 420,000 electric vehicles as of March 2024.
Strategic backer Hero MotoCorp holds approximately 38% stake in the company post-IPO.
Ather’s IPO, priced at Rs 321 per share, opened for bidding from April 28 to April 30, 2025, and the shares listed on BSE and NSE on May 6, 2025. The issue raised Rs 2,626 crore through a fresh issue of shares.
Why it is raising again
Backed by a 69% surge in FY26 volumes and sharply narrowing losses, the company is securing growth capital to fund a critical threefold capacity expansion. Production at a new facility in Aurangabad, Maharashtra, is set to begin in phases from May 2026, with a target annual capacity of over one million units.
The company is also developing two new platforms: EL, a modular scooter platform with the first model expected by late 2026, and Zenith, its entry into the electric motorcycle segment targeting the 125cc to 300cc bracket.
India’s electric two-wheeler penetration has climbed from 1.8% four years ago to 6.6% today, with industry projections pointing to 20% penetration by FY30.
QIP of Rs 1,500 crore to seek shareholder nod via postal ballot
Of the total fundraise, up to Rs 1,500 crore will be raised through a qualified institutions placement (QIP) of equity shares, in one or more tranches, subject to regulatory and shareholder approvals.
Shareholders will be asked to vote on the QIP through a postal ballot conducted exclusively via e-voting, by way of a special resolution. A postal ballot notice with further details is to be submitted to the stock exchanges in due course.
Additional Rs 1,000 crore via FCCBs or other instruments
The remaining Rs 1,000 crore is proposed to be raised through equity shares, foreign currency convertible bonds (FCCBs), or other eligible instruments convertible into or exchangeable for equity shares, whether rupee-denominated or in foreign currency. These may be issued through a preferential allotment, rights issue, or any other permissible route, in one or more tranches.
The board has constituted a Fundraising Committee to oversee all matters related to the issue. Investor names and pricing will be disclosed at the appropriate time as required under applicable law.
