Ather Energy Plans $200 Million Via Share Sale: Report

Ather Energy Ltd. is planning to raise $200 million through a share sale to institutional investors, with the fundraising likely to take place as early as next week, according to people familiar with the matter, reported Bloomberg. The electric two-wheeler manufacturer has appointed HSBC Holdings Plc, Axis Capital Ltd. and Nomura Holdings Inc. to manage the proposed qualified institutional placement (QIP), the people said, requesting anonymity.

The proposed fundraising is likely to provide additional capital to expand the company's manufacturing capacity, strengthen its retail network and support the development of new products as competition in India's electric two-wheeler market continues to intensify.

Ather has attracted backing from investors including Hero MotoCorp and has been expanding both its product portfolio and charging infrastructure to strengthen its position in the country's fast-growing electric scooter segment.

This comes days after Ather Energy announced it was speeding up the commissioning of its third manufacturing facility in Chhatrapati Sambhajinagar, in Maharashtra, as rising demand pushes existing capacity close to its limits. 

The company has already deployed ₹927 crore towards the project from the nearly ₹3,000 crore raised through its initial public offering last year.

The Bengaluru-based company competes with several established players in the electric scooter market, including Ola Electric Mobility, TVS Motor Company and Bajaj Auto.