Government To Invest ₹200 Crore In Ather Energy Fundraise Alongside Hero MotoCorp

The Government of India will invest ₹200 crore in Ather Energy’s proposed ₹1,200 crore fundraise through the India-Japan Fund, according to the company’s stock exchange filing dated July 15. The investment will form part of a preferential issue that also includes participation from Hero MotoCorp and Ather’s co-founders.

The India-Japan Fund, a $600 million bilateral fund established by the Government of India and the Japan Bank for International Cooperation, is managed by the National Investment and Infrastructure Fund Ltd.

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Under the proposed issue, Hero MotoCorp will subscribe to convertible warrants worth ₹960 crore, while Ather co-founders Tarun Mehta and Swapnil Babanlal Jain will invest ₹20 crore each. The founders will subscribe to 1,58,730 convertible warrants apiece.

Preferential Issue Forms Part Of Larger ₹2,500 Crore Plan

The ₹1,200 crore preferential issue represents the first part of Ather Energy’s broader ₹2,500 crore fundraising programme approved by its board in June. The company had proposed raising up to ₹1,500 crore through a qualified institutional placement, with the remaining ₹1,000 crore to be raised through a preferential issue, rights issue or another permitted route.

The July 15 transaction represents the preferential issue component of the planned fundraising. Details of the proposed QIP have not yet been announced.

Hero MotoCorp had separately approved an investment of up to ₹1,000 crore in Ather Energy on July 14. The company held a 29.48% stake in Ather as of June 30, with its post-transaction holding depending on the pricing and structure of the securities issued. Ather Energy share price was trading 9% higher at ₹1,309.70 at 10:38 a.m. on July 15.

Ather Holds Third Position In Electric Two-Wheeler Market

Ather’s fundraising comes as competition in India’s electric two-wheeler market remains intense. The Bengaluru-based company competes with established manufacturers such as TVS Motor and Bajaj Auto, which have broader distribution networks and larger financial resources.

Ather recorded 29,422 registrations in June, an increase of 79.5% from 16,392 units a year earlier, according to the data cited in the company-related market update. Its market share rose to 16.2% from 14.7% in June 2025, keeping it in third place in the segment.

The proposed capital infusion is also being announced after rival Ola Electric Mobility raised around ₹780 crore through a QIP earlier in July 2026.

For investors tracking Ather Energy share price movements, the proposed fundraise, the participation of its largest shareholder and the government-backed investment represent the latest developments in the company’s capital-raising programme. The proposed transactions are subject to the applicable approvals and completion requirements.