Ather Energy shares gain up to 10%; Board approves fund raise of up to ₹1,200 crore

Ather Energy Ltd.’s board of directors has approved the fund raise of up to 1,200 crore at the conclusion of its board meeting on Wednesday, July 15.The board has approved the issue of 16 lakh equity shares to the India-Japan fund at ₹1,230 per share and issue 79.36 lakh convertible warrants to promoters at ₹1,260 per warrant. India-Japan Fund is an existing shareholder in the company.

The convertible warrants are being issued to Hero MotoCorp, Tarun Mehta and Swapnil Jain.
At the end of the June quarter, Ather Energy’s promoters and promoter groups held 39.96% stake in the firm while public shareholders held 60.04% stake.Promoters Swapnil Jain and Tarun Mehta held 5.03% stake each in the company. Promoter groups Jain Family Trust and Swapnil Jain Family Trust — both represented by Jain — held 0.17% stake each and the Mehta Family Trust and Turn Swarna Family Trust — both represented by Mehta — held 0.15% and 0.14% stake, respectively.

Meanwhile, promoter group Hero MotoCorp held a 29.5% stake in the company

Hero MotoCorp had announced plans to invest an additional ₹1,000 crore in Ather Energy via a preferential issue of equity shares or convertible warrants, subject to approvals. Hero MotoCorp had said on Tuesday that its shareholding post transaction will depend on the final pricing and structure of the proposed securities issued.

The transaction is expected to be completed within 15 days of getting the required approvals.

Shares of Ather Energy are trading 8% higher on Wednesday at ₹1,297.3. At the intraday high of ₹1,318, the stock had crossed a market capitalization of ₹50,000 crore. With today’s move, the stock has extended its year-to-date advance to 76%.

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