Shares of Ather Energy are likely to remain in focus after the company said its board will meet on June 12 to consider raising fresh capital through multiple fundraising avenues.
In an exchange filing on Tuesday, Ather said the board will evaluate raising funds through 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, private placement or a combination of these methods.
1 June 2026
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Expansion Plans Drive Fundraising
The move comes just over a year after Ather's ₹2,981-crore initial public offering. The Bengaluru-based electric scooter maker currently commands a market capitalisation of around ₹38,400 crore, with its shares trading near ₹1,011.
Unlike rival Ola Electric, which recently raised ₹780 crore through a QIP amid concerns over market share and profitability, Ather is approaching investors after reporting strong operational growth and improving market position.
During its fourth-quarter earnings call, Chief Executive Officer Tarun Mehta said Ather's vehicle volumes surged 66% during FY26.
The company's market share expanded from around 8% to 18.6% by the March quarter, driven largely by strong demand for its family scooter, Rizta.
Ather also significantly expanded its retail presence during the year, increasing its store network from 351 outlets to 700 while more than doubling the number of service centres.
The company sold approximately 83,000 vehicles during the March quarter alone, supported by rising demand across both southern and northern India.
Preparing For Mass-Market EV Launch
The proposed fundraising comes as Ather prepares to enter the mass-market electric scooter segment through its upcoming EL platform.
The new platform is expected to target the ₹1 lakh-₹1.25 lakh price bracket, allowing the company to compete in a segment that accounts for nearly half of India's electric two-wheeler market.
"The segment accounts for 45-50% of India's electric two-wheeler market, while Ather currently participates largely in the premium and mass-premium categories," Mehta told analysts.
He described the EL platform as one of the company's key growth drivers for FY27 and FY28.
Manufacturing Expansion Underway
Ather is also ramping up production capacity to support future demand. The company's Hosur manufacturing facility is currently operating at 90-95% utilisation and has an installed capacity of around 35,000 units per month.
To support long-term growth, Ather is building a new manufacturing facility at AURIC City in Bidkin, Maharashtra.
The 98-acre project will involve an investment of more than ₹2,000 crore.
The first phase of the facility is expected to add annual production capacity of 5 lakh units, with approximately 42,000 units of incremental monthly capacity planned by the end of FY27.
Industry Faces Cost Pressures
The fundraising initiative comes at a time when EV manufacturers continue to grapple with rising raw material and battery costs.
Industry players have indicated that lithium prices remain more than twice historical levels, while battery cell costs have risen between 30% and 50% in recent quarters due to commodity inflation and supply-chain challenges.
Despite ongoing cost optimisation efforts and selective price hikes, EV manufacturers expect margin pressures to persist in the near term.
According to government vehicle registration portal Vahan, Ather currently ranks as India's third-largest electric two-wheeler manufacturer.
