Ather Energy Board Approves ₹1,200 Crore Preferential Issue

Ather Energy's board has approved raising up to ₹1,200 crore through equity shares and convertible warrants to be issued to India-Japan Fund, Hero MotoCorp Limited, and two company promoters, subject to shareholder approval at EGM.

16 Jul 2026 | 5486 Views | By Sarthak Mahajan

Ather Energy Limited informed stock exchanges that its Board of Directors, at a meeting held on July 15, 2026, approved a preferential issue of securities aggregating up to ₹1,200 crore.

Under the plan, the company will issue 16,26,016 fully paid-up equity shares of face value ₹1 each at ₹1,230 per share (including a premium of ₹1,229) to India-Japan Fund, represented by its investment manager, National Investment and Infrastructure Fund Limited. This tranche, categorised as a non-promoter QIB allotment, will raise approximately ₹199.99 crore.

Separately, the company will issue 79,36,507 convertible warrants at ₹1,260 per warrant (including a premium of ₹1,259), each convertible into one equity share. These warrants will be allotted to promoters Hero MotoCorp Limited (76,19,047 warrants), Mr. Tarun Sanjay Mehta (1,58,730 warrants), and Mr. Swapnil Babanlal Jain (1,58,730 warrants), together raising up to ₹999.99 crore.

Warrant subscribers will pay 25% of the issue price upfront, with the remaining 75% payable at the time of conversion. The warrants carry a tenure of up to 18 months from allotment, after which unconverted warrants will lapse and the amount already paid will be forfeited.

On a post-preferential, fully diluted basis, Hero MotoCorp's stake is projected to rise from 29.48% to 30.68%, while India-Japan Fund's holding would increase from 5.75% to 6.02%. The two individual promoters would each see their stake move from 4.93% to 4.85%.

The company noted that the relevant date for pricing purposes under SEBI's ICDR Regulations is July 15, 2026. The proposal requires approval from shareholders via special resolution at an Extraordinary General Meeting, notice of which will be issued in due course.

Ather also reiterated that its trading window for dealing in securities remains closed for designated persons and their immediate relatives, in line with its insider trading code, and will reopen at a later date.

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