Government of India backed India-Japan Fund, via National Investment and Infrastructure Fund (NIIF), will invest Rs 200 crore in Ather Energy as the board of electric two-wheeler company on Wednesday approved a fundraise of up to Rs 1,200 crore via a preferential issue that will combine both equity shares and convertible warrants.
Ather’s largest shareholder - Hero MotoCorp - will invest Rs 960 crore while founders Tarun Mehta and Swapnil Jain will chip in Rs 20 crore each. The fundraising comes as Ather had last month announced plans to raise up to Rs 2,500 crore to fund expansion, research and development, new products and manufacturing capacity.
Ather Energy shares gained more than 8% on Wednesday to settle at Rs 1,299 apiece.
As per an exchange filing, the fundraising includes an allotment of equity shares at Rs 1,230 per share, along with the issuance of 79.36 Lakh convertible warrants priced at Rs 1,260 each. India-Japan Fund is allotted 16,26,016 equity shares while 76,19,047 warrants are issued to Hero MotoCorp. Founders Mehta and Jain have been allotted 1,58,730 warrants each.
Hero MotoCorp on Tuesday announced that it has approved an additional investment of up to Rs 1,000 crore in Ather through a preferential allotment. It said that the investment is being made in the form of subscription to additional Securities of Ather for up to Rs 1,000 crore. The country’s largest two-wheeler, as of June 30, 2026, held 29.48% (on a fully diluted basis) of the paid-up share capital of Ather.
The Bengaluru headquartered e2W company has seen a sharp surge in EV sales with registrations rising 91% Y-o-Y in H1CY26 to 169,020 units and market share increasing to 17.4% from 14%. Ather reported a total income of Rs 3,823 crore for the financial year ended March 31, 2026 (FY26), marking a 66% year on year increase driven by strong vehicle demand. The company’s net losses came down to Rs 517 crore in FY26 compared to Rs 812 crore in the previous year.