Ather Energy Charges Up for ₹2,500 Crore Expansion Drive

Electric two-wheeler manufacturer Ather Energy has approved a plan to raise up to ₹2,500 crore through a mix of equity and debt-linked instruments to support its expansion strategy and scale up manufacturing capacity amid rising demand for electric vehicles.

The proposal was cleared by the company’s board on June 12. The fundraising will be executed through multiple routes, including a qualified institutions placement (QIP), rights issue, preferential allotment, foreign currency convertible bonds (FCCBs) and other eligible securities, subject to regulatory and shareholder approvals.

Under the plan, Ather Energy aims to raise up to ₹1,500 crore through a QIP of equity shares, which may be carried out in one or more tranches. In addition, the company intends to mobilize up to ₹1,000 crore via equity issuance, FCCBs or other convertible instruments as part of its broader capital-raising strategy.

To facilitate the process, the company has constituted a dedicated Fundraising Committee to oversee execution, structure the offerings and ensure compliance with applicable regulatory requirements.

The proceeds will primarily be directed toward Ather Energy’s expansion initiatives, including the development of its third manufacturing facility in Chhatrapati Sambhajinagar, Maharashtra. The company has already invested ₹927 crore in the project using funds raised through its initial public offering (IPO) last year.

Co-founder and CEO Tarun Mehta said the upcoming facility is essential to meeting growing production requirements, highlighting the urgency of expanding capacity in line with accelerating demand in the electric mobility sector.

The proposed fundraising is expected to strengthen the company’s financial position, support large-scale capacity expansion and reinforce its long-term growth strategy in the competitive EV market.

News by Rahul Yelligetti.