With Ather’s latest capital infusion, a massive fundraising backed by Hero MotoCorp and India-Japan Fund aims to support growth.
Electric two-wheeler manufacturer Ather Energy Ltd has approved a ₹12 billion preferential fundraise from existing investors, including Hero MotoCorp, the India-Japan Fund and the company’s promoters, to support expansion, research and debt reduction.
According to a regulatory filing, the company’s board approved the issue of equity shares to the India-Japan Fund and warrants to Hero MotoCorp, along with promoters Tarun Sanjay Mehta and Swapnil Babanlal Jain.
Hero MotoCorp, classified as a promoter, will invest ₹9.6 billion through the subscription of 7,619,047 warrants. Each warrant is convertible into one equity share with a face value of Re 1 at an issue price of ₹1260. Following the preferential allotment, Hero MotoCorp’s stake in Ather Energy will rise to 30.68 per cent from 29.48 per cent.
The India-Japan Fund will invest nearly ₹2 billion by subscribing to 1,626,016 fully paid equity shares with a face value of Re 1 each at an issue price of ₹1230, including a premium of ₹1229 per share.
The fund, backed by the government of India and the Japan Bank for International Cooperation as anchor investors, will see its shareholding increase to 6.02 per cent from 5.75 per cent.
The remaining ₹400 million will come from Ather’s promoters. Tarun Sanjay Mehta and Swapnil Babanlal Jain will each subscribe to 158,730 warrants at ₹1230 apiece, amounting to ₹200 million each.
Despite the additional investment, their respective holdings will decline marginally to 4.85 per cent from 4.93 per cent after the preferential issue.
Ather said the proceeds will be used for research and development, marketing initiatives, debt repayment and general corporate purposes.
The capital will also support the ongoing Factory 3.0 project in Chhatrapati Sambhajinagar, Maharashtra, which is expected to increase the company’s annual installed manufacturing capacity to 1.42 million electric two-wheelers.
