Electric two-wheeler maker Ather Energy's board will meet on June 12 to consider raising fresh capital, the company said in an exchange filing on Tuesday.
Ather said it will look to raise funds through various instruments, including equity shares, foreign currency convertible bonds (FCCBs), non-convertible debentures, warrants and other convertible securities. The fundraising could be undertaken through a qualified institutional placement (QIP), rights issue, preferential allotment or private placement.
The move comes just over a year after Ather's Rs 2,981-crore initial public offering. The Bengaluru-based company currently has a market capitalisation of around Rs 38,400 crore, with its shares trading at Rs 1,011.
Last week rival Ola Electric also raised Rs 780-crore through a QIP, with SBI Mutual Fund, Motilal Oswal Mutual Fund and Invesco participating in the issue.
Unlike Ola Electric, which has faced pressure around market share and profitability, Ather is approaching investors after reporting stronger operating metrics and rapid expansion.
In its Q4 earnings call last month, chief executive Tarun Mehta said Ather’s volumes surged 66% in FY26, while market share expanded from around 8% to 18.6% by the March quarter, riding largely on family scooter Rizta.
The company also doubled its retail footprint from 351 stores to 700 stores during FY26, while service centres more than doubled.
Ather sold about 83,000 vehicles in the March quarter alone, according to its quarterly results, as demand grew across both southern and northern markets.
Next phase
The fundraising plans come as Ather prepares for its next phase of expansion, centred around its upcoming EL scooter platform, which is expected to enter the mass-market electric scooter category with pricing ranging between Rs 1 lakh and Rs 1.25 lakh.
“The segment (mass-market) accounts for 45-50% of India’s electric two-wheeler market, while Ather currently participates largely in the premium and mass-premium categories, representing only about 25-30% of the market,” Mehta told analysts during the earnings call. He added that the big growth driver in FY27 and FY28 “is going to be first and foremost EL.”
The company is also scaling up manufacturing capacity. Mehta said Ather’s Hosur facility is currently operating at 90-95% utilisation, with an installed capacity of about 35,000 units per month.
To support future growth, the company is building a new plant at AURIC City in Bidkin, Maharashtra. The 98-acre facility will see an investment of over Rs 2,000 crore.
The first phase of the facility is expected to add annual production capacity of 5 lakh units, with around 42,000 units of incremental monthly capacity planned by the end of FY27.
Operational challenges
The capital-raise comes amid EV companies flagging rising raw material costs and supply-chain pressures. Companies say lithium prices remain more than two times higher than earlier levels, while battery cell costs have risen 30-50% in recent quarters because of commodity inflation.
The industry expects margin pressure to continue in the near term despite price hikes and cost-cutting efforts.
Ather’s shares listed on the NSE and BSE on May 6, 2025, at Rs 326.05 each. Currently Ather holds the third position in the EV wheeler market, as per data on government portal Vahan, which tracks registrations.
