Ather Energy Closes ₹1,300 Crore QIP to Drive ₹2,500 Crore Capital Expansion

The e-two wheeler maker completes its equity issue following strong demand from foreign portfolio managers and domestic mutual funds.

21 Jul 2026 | 3471 Views | By Dev Vadchhedia

Ather Energy Limited has completed its ₹1,300 crore Qualified Institutional Placement (QIP), marking the completion of the institutional portion of its overall ₹2,500 crore fundraising plan, co-founder and CEO Tarun Mehta said in a post on X (formerly Twitter). The company issued 1,08,15,307 equity shares of face value ₹1 each, at an issue price of ₹1,202 per share, securing an issue premium above the regulatory floor price of ₹1,169.70 per share.

The institutional offering attracted bids across key domestic and international investor categories, with major share allocations recorded for several primary institutional buyers. International participation also included asset managers White Oak and William Blair. 

The QIP is anchored within a broader ₹2,500 crore funding structure designed to fuel Ather’s next phase of market expansion. The remaining ₹1,200 crore was raised through a preferential allotment to existing strategic partners and internal promoters. Hero MotoCorp invested approximately ₹960 crore through convertible warrants, elevating its fully diluted stake to 30.68 percent.

The company said that the capital from the raise is targeted toward scaling manufacturing infrastructure and financing upcoming vehicle deployments. A portion of the proceeds will support construction of the company's Factory 3.0 facility in Chhatrapati Sambhajinagar, Maharashtra, expanding total annual production capacity to 1.42 million units.

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