Ather Energy Limited has approved the allotment of 16,26,016 equity shares and 79,36,507 convertible warrants through a preferential issue. This issuance is expected to raise approximately ₹1,999.99 crore from the equity shares and potentially up to ₹999.99 crore from the warrants, totaling close to ₹3,000 crore. The funds raised will bolster the company’s financial position and support its growth initiatives.
Ather Energy Secures Significant Capital Through Preferential Allotment
Ather Energy Limited, a leading electric two-wheeler manufacturer, announced on August 25, 2026, the approval for a substantial preferential issue. This move involves the allotment of 16,26,016 fully paid-up equity shares and 79,36,507 convertible warrants. The issuance was approved by the Board of Directors via a circular resolution, following prior approvals from the company’s shareholders.
Details of the Preferential Issue
The equity shares are being issued at a price of INR 1,230 per share, including a premium of INR 1,229, aggregating to approximately INR 1,999.99 crore. Additionally, 79,36,507 warrants are being allotted at an issue price of INR 1,260 per warrant. Each warrant is convertible into one equity share. The total potential proceeds from the warrants, if fully converted, could amount to approximately INR 999.99 crore. This combined issuance represents a significant capital infusion for Ather Energy.
Key Allottees and Investment Structure
Among the key allottees for the equity shares is the India Japan Fund (IJF). The warrants have been allotted to entities including Hero MotoCorp Limited, Mr. Tarun Sanjay Mehta, and Mr. Swapnil Babanlal Jain. The subscription for the warrants requires an upfront payment of 25% of the issue price at the time of subscription, with the remaining 75% payable upon conversion. These warrants have a tenure not exceeding 18 months from the allotment date.
Impact on Share Capital
Following this allotment, Ather Energy’s paid-up equity share capital has increased from INR 39,44,93,184 to INR 39,61,19,200. The newly issued equity shares, including those arising from warrant conversions, will rank pari-passu with the existing equity shares of the company. The equity shares are expected to be listed on the NSE and BSE upon receipt of the relevant listing approvals. The company also noted that in-principle approvals have been received from the National Stock Exchange of India (NSE) and BSE Limited (BSE) for this preferential issue.
Source: BSE
