Electric two-wheeler maker Ather Energy is preparing to raise about $200 million (around Rs 1,700 crore) through a qualified institutional placement (QIP), as the company looks to strengthen its expansion plans after listing on Indian stock exchanges earlier this year. The share sale could begin as early as next week, according to people familiar with the development.
The Bengaluru-based EV manufacturer has reportedly appointed HSBC, Axis Capital and Nomura to manage the institutional fundraising. While the final size and timing of the issue remain subject to market conditions, the exercise is expected to attract domestic as well as global institutional investors.
The fresh capital is expected to be used to expand Ather Energy's manufacturing capacity, widen its retail footprint, and accelerate the development of new electric vehicle platforms. The company has been progressively growing its footprint in India in light of increasing competition in the electric two-wheeler category.
The company has made aggressive investments in production, dealer network expansion, and the development of innovative products in an industry where automobile giants and EV start-ups compete.
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India’s EV industry has become a bit more competitive after the arrival of fresh players, like Ola Electric, TVS Motor and Bajaj Auto, in the market. In general, there have been investments in developing new product types, distribution channels, and manufacturing facilities to keep up with rising consumer demand for electric vehicles.
Analysts say more investment will be required going forward, so companies can scale up operations, boost profitability, and roll out products across varied price bands, not just one segment.
Ather Electric has a new plan to raise funds through an institutional equity offering, following its IPO. In practice, this sort of sequence suggests the company wants to push ahead with an expansion plan, even as competition in the industry becomes increasingly intense.