Electric two-wheeler maker Ather Energy's board on Friday approved plans to raise up to Rs 2,500 crore through a mix of qualified institutional placement (QIP) and other equity-linked instruments, a little over a year after its stock market debut.
The Bengaluru-based company said in a regulatory filing that it will raise Rs 1,500 crore through a QIP, while another Rs 1,000 crore could come via instruments including equity shares, foreign currency convertible bonds (FCCBs), preferential issue or rights issue.
The board has also constituted a fund raise committee to oversee the proposed capital raising exercise.
The company had informed exchanges earlier this week that its board would consider a fresh fundraising proposal as it gears up for its next phase of growth.
The latest fundraising comes as Ather Energy looks to strengthen its balance sheet and invest in manufacturing capacity expansion, product development and distribution amid intensifying competition in India's electric two-wheeler market. The company had raised primary capital through its initial public offering, but had indicated that additional capital could be required to support future growth plans.
On June 4, Ather Energy's rival in the electric two-wheeler space, Ola Electric, raised Rs 780 crore through a QIP , with SBI Mutual Fund, Motilal Oswal Mutual Fund and Invesco participating in the issue.
However, unlike Ola Electric, which has faced pressure around market share and profitability, Ather Energy will be approaching investors after reporting stronger operating metrics and undertaking rapid expansion.
The EV maker doubled its retail footprint from 351 stores to 700 stores during FY26, while service centres more than doubled. It sold around 83,000 vehicles in the March quarter alone, according to its quarterly results, as demand grew across both southern and northern markets.
