Ather Energy Opens Placement to Raise Capital

Electric vehicle manufacturer Ather Energy has launched a Qualified Institutional Placement (QIP) to raise new capital. The company has set a floor price of ₹1,169.70 per share, a discount to its closing price of ₹1,298. Subscribers may be offered a discount of up to 5% below the floor price.

The capital raised is intended for repaying or pre-paying borrowings, investing in research and development, and fueling marketing initiatives. This QIP is part of Ather's previously announced plan to raise up to ₹2,500 crore, with ₹1,500 crore earmarked for this placement.

Furthermore, Ather Energy has approved a preferential issue to raise up to ₹1,200 crore. As part of this transaction, Hero MotoCorp will invest approximately ₹960 crore, and the India-Japan Fund, through the National Investment and Infrastructure Fund (NIIF), will invest ₹200 crore.

The funding comes as competition intensifies in the electric two-wheeler market. Ather Energy has also recently reported narrowing losses and improved revenue, with net losses reducing by 57.2% and revenue increasing by 73.7% in the latest reported quarter.