Ather raises US$163M preferential issue, lifting total fundraise to US$339.5M
What's the deal? Ather Energy shareholders approved a US$163M preferential issue, with 97.72% of votes cast in favour at an extraordinary general meeting. Combined with the recently completed US$176.5M qualified institutional placement, the issue takes Ather's total fundraise to around US$339.5M.
Who's investing? Hero MotoCorpDealroom has a profile for this one. Try Dealroom → will invest around US$130.4M, while strategic investor India-Japan Fund will invest US$27.2M. Co-founders Tarun MehtaDealroom has a profile for this one. Try Dealroom → and Swapnil JainDealroom has a profile for this one. Try Dealroom → will invest US$2.72M each.
The terms: Hero MotoCorp and the co-founders will invest through warrants at US$17.1 apiece, a 7.2% premium to the US$16 floor price. India-Japan Fund will subscribe to equity shares at US$16.7, a 4.6% premium to the floor price.
By the numbers: Ather delivered 263,000 scooters in FY26, while total income rose 66% year-on-year to US$519.2M. The company turned EBITDA positive in the June quarter of FY27.
What's the endgame? The fresh capital will strengthen manufacturing capacity, expand product and technology capabilities and bolster the balance sheet. Ather's new facility at AURIC in Chhatrapati Sambhaji Nagar is on track for commissioning in the third quarter of FY27, adding 500,000 units of annual capacity.
Why now? Ather is expanding its product portfolio through its EL platform. The first product built on it, the Ather Konarc, is scheduled to launch on 29 August at Ather Community Day.
The signal: At roughly $144 million, the raise ranks in the top third of comparable rounds, underscoring investor confidence in an electric-vehicle maker moving towards profitability as it scales output.
Read more: CNBC-TV18
Image credit: MSVG
