The Centre will invest ₹200 crore in electric two-wheeler maker Ather Energy's proposed ₹1,200-crore fundraise, according to an exchange filing on July 15.
The investment will be made through the India-Japan Fund (IJF), a $600 million (around ₹4,900 crore) bilateral fund set up by the Government of India and the Japan Bank for International Cooperation (JBIC). The fund is managed by the National Investment and Infrastructure Fund Ltd (NIIFL).
The government-backed investment will be made alongside participation from Ather's founders and existing shareholder Hero MotoCorp, according to a Moneycontrol report.
4 July 2026
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How The Funds Will Be Raised
As per the filing, of the ₹1,200-crore preferential issue, the India-Japan Fund will invest ₹200 crore through an allotment of equity shares, while Hero MotoCorp will subscribe to convertible warrants worth ₹960 crore.
Ather's co-founders will together invest ₹40 crore. Tarun Mehta and Swapnil Babanlal Jain will each commit ₹20 crore through the subscription of 1,58,730 convertible warrants apiece.
The ₹1,200-crore preferential issue forms the first tranche of Ather Energy's broader ₹2,500-crore fundraising programme approved by the board in June. The company had proposed raising up to ₹1,500 crore through a qualified institutional placement (QIP) and the remaining ₹1,000 crore through a preferential issue, rights issue or other permissible routes. The preferential issue approved on July 15 represents execution of that portion of the fundraise, with the QIP tranche yet to be announced.
Timeline Of The Fundraise
On June 12, Ather Energy's board approved a fund raise of up to ₹2,500 crore, split between the QIP and preferential or rights issue routes. The company also constituted a fund raise committee to oversee the process.
On June 13, Moneycontrol reported that Ather Energy had initiated discussions with at least three investment banks for its first capital raise since its May 2025 IPO. On July 7, the publication had reported that 12 investment banks had been engaged for the fundraise.
On July 14, Hero MotoCorp, Ather's biggest shareholder, approved an investment of up to ₹1,000 crore in the company through a preferential allotment of shares or convertible securities. The transaction is targeted to be completed within 15 days of final approval. Hero held a 29.48% stake in Ather Energy as of June 30, and said its post-transaction stake will depend on the pricing and structure of the securities issue.
At 10:38 am on July 15, Ather Energy shares were trading 9% higher at ₹1,309.7 apiece.
The fundraise comes after rival Ola Electric Mobility raised about ₹780 crore through a QIP, exceeding its earlier target of ₹500 crore, according to the company's stock exchange filing on June 4.
Ather Energy, an early entrant in India's electric two-wheeler market, has faced competition from larger rivals such as TVS Motor and Bajaj Auto, which have stronger financial resources and wider distribution networks.
Ather held the third spot in the segment with 29,422 registrations in June, up 79.5% year-on-year from 16,392 units. The company's market share rose to 16.2%, compared with 14.7% in June 2025.
