Ather Energy's board approved a ₹1,200-crore preferential issue on July 15, 2026, the first tranche executed under the company's wider ₹2,500-crore fundraising plan cleared on June 12, 2026, its first capital raise since listing on the NSE and BSE in May 2025.
The deal
| Investor | Instrument | Price/unit | Amount |
|---|---|---|---|
| India-Japan Fund (NIIF-managed) | ~16.3 lakh equity shares | ₹1,230 | ₹200 crore |
| Hero MotoCorp | 76,19,047 convertible warrants | ₹1,260 | ₹960 crore |
| Tarun Mehta (co-founder) | 1,58,730 warrants | ₹1,230 | ₹20 crore |
| Swapnil Jain (co-founder) | 1,58,730 warrants | ₹1,230 | ₹20 crore |
| Total | ₹1,200 crore |
The India-Japan Fund is a bilateral platform backed by the Government of India and the Japan Bank for International Cooperation, managed by the National Investment and Infrastructure Fund. Warrant subscribers pay 25% upfront, with the balance due on conversion within 18 months. The transaction needs shareholder and regulatory approval before allotment.
Shareholding, pre- and post-issue:
| Shareholder | Pre-issue | Post-issue |
|---|---|---|
| Hero MotoCorp | 29.48% | 30.68% |
| India-Japan Fund | 5.75% | 6.02% |
| Tarun Mehta | 4.93% | 4.85% |
| Swapnil Jain | 4.93% | 4.85% |
Ather shares rallied through the day on July 15, touching a fresh all-time high (reported between ₹1,309 and ₹1,319 across intraday snapshots) before closing around ₹1,298, up roughly 8% for the session and pushing market capitalisation past ₹49,000 crore, briefly crossing ₹50,000 crore intraday. The rally reflected a cluster of same-window news: Hero MotoCorp's board approving a further investment of up to ₹1,000 crore into Ather on July 14, the July 14 QIP shareholder approval, and Ather's own July 15 confirmation of the ₹1,200-crore preferential issue and its plans to launch a new, more affordable scooter on its EL platform.
The larger plan
The June 12 board approval authorised up to ₹2,500 crore in total, structured in two legs:
- Up to ₹1,500 crore via a Qualified Institutions Placement (QIP), in one or more tranches. Shareholders approved this leg through a postal ballot that closed July 14, 2026, with 99.9979% of votes in favour. Ather subsequently opened the QIP and set a floor price of ₹1,169.70 per equity share (a discount to its then-closing price of ₹1,298), with the company permitted to offer qualified institutional buyers up to a further 5% discount on that floor.
- Up to ₹1,000 crore via preferential allotment, rights issue, or foreign currency convertible bonds (FCCBs) — the bucket this ₹1,200-crore preferential tranche falls under.
Ather has stated that proceeds from the overall programme will go toward research and development, marketing, repayment or pre-payment of borrowings, and general corporate purposes, including its Factory 3.0 plant under construction in Chhatrapati Sambhajinagar, Maharashtra. Commercial operations there are targeted for October 2026, and the site is expected to lift Ather's total installed capacity to around 1.42 million units annually. Of the ₹927.2 crore originally earmarked for this factory from Ather's May 2025 IPO proceeds, ₹139.63 crore had been utilised as of March 31, 2026, leaving ₹787.57 crore still to be deployed from that allocation alone, a gap this new fundraise is intended to help close.
Financial backdrop (FY26, year ended March 31, 2026)
Ather's board approved its audited FY26 results at a meeting on May 4, 2026.
| Metric | Q4 FY26 | Q4 FY25 | FY26 (Full Year) | FY25 (Full Year) |
|---|---|---|---|---|
| Revenue from operations | ₹1,174.66 cr | ₹676.08 cr | ₹3,671.76 cr | ₹2,255.01 cr |
| Total income | ₹1,213.77 cr | ₹687.79 cr | ₹3,823.08 cr | ₹2,305.22 cr |
| Net loss | ₹100.23 cr | ₹234.36 cr | ₹517.17 cr | ₹812.28 cr |
| EBITDA loss | ₹30 cr | ₹173 cr | ₹257 cr | ₹531 cr |
| Adjusted Gross Margin | ₹309 cr (25%) | 18% of income | ₹925 cr (24%) | 19% of income |
| Units delivered | 83,418 | ~47,400 | 2,62,942 | ~1,55,900 |
| Loss per share | ₹2.62 | ₹8.93 | — | — |
Ather doubled its retail network to 700 Experience Centres in FY26, from 351 a year earlier, and its service network grew to around 548 centres. Non-vehicle revenue, software subscriptions, charging, accessories and service, made up about 13% of total income for the year. The company's charging network, powered by its LECCS fast-charging system, crossed 6,000 points as of March 31, 2026, with over 1,100 points added during FY26.
As of March 31, 2026, ₹1,617.07 crore of Ather's ₹2,626-crore May 2025 IPO proceeds remained unutilised, against ₹1,008.93 crore already deployed.
Market position
According to FADA retail registration data, India registered 970,993 electric two-wheelers in January–June 2026, up 53.3% year-on-year from 633,599 units in H1 2025.
| Manufacturer | H1 2026 Registrations | H1 2026 Share | H1 2025 Share |
|---|---|---|---|
| TVS Motor | 251,438 | 25.9% | 23.9% |
| Ather Energy | 169,020 | 17.4% | 14.0% |
| Hero MotoCorp (Vida) | 106,019 | 10.9% | 5.4% |
| Ola Electric | 65,999 | 6.8% | 18.6% |
Together, TVS, Bajaj Auto, Hero and Ather accounted for 95.6% of the industry's net volume addition during the half, with their combined market share rising from 66.6% in H1 2025 to 76.7% in H1 2026.
For June 2026 alone, FADA recorded 1,93,735 electric two-wheeler registrations, up 74.98% year-on-year. TVS led with 47,064 units (24.29% share), Bajaj Auto followed with 43,306 units (22.35%), and Ather held third place with 31,188 units (16.12%), up from 28,512 units in May 2026.
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