Ather Energy To Raise ₹1,200 Cr To Fuel Next Phase Of Growth
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Electric two-wheeler (E2W) maker Ather Energy’s board has approved a fundraise of up to ₹1,200 Cr via a preferential issue that will combine both equity shares and convertible warrants.
The fundraising comprises an allotment of equity shares at ₹1,230 per share, along with the issuance of 79.36 Lakh convertible warrants priced at ₹1,260 each. Each warrant is convertible into one equity share.
Promoter Hero MotoCorp will invest the greatest ₹959.99 Cr to subscribe to 76.19 Lakh warrants. Cofounders Tarun Mehta and Swapnil Jain will invest ₹20 Cr each to subscribe to 1.59 Lakh warrants apiece.
Meanwhile, India-Japan Fund, via National Investment and Infrastructure Fund (NIIF), will invest about ₹200 Cr to lap up 16.26 Lakh equity shares.
Last month, Ather announced plans to raise up to ₹2,500 Cr to fund expansion, research and development, new products and manufacturing capacity.
The warrants can be converted into one equity share each within 18 months of allotment. Investors will pay 25% of the warrant issue price at the time of subscription, with the remaining 75% payable upon conversion.
Following the preferential issue and assuming full conversion of the warrants, Hero MotoCorp’s stake in Ather is expected to rise to 30.68% from 29.48%. NIIF’s shareholding will increase to 6.02% from 5.75%.
Meanwhile, Mehta and Jain’s stakes are expected to decline marginally to 4.85% each from 4.93% on a fully diluted basis.
Ather will seek shareholder approval for the proposed fundraise through a special resolution at an extraordinary general meeting.
The development comes a day after Hero MotoCorp said its committee of directors had approved a fresh investment in Ather through a preferential allotment of equity shares or other
Shares of Ather Energy were trading 7.8% higher at ₹1,297 on the BSE at 15:09.
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