Shares of Ather Energy dipped approximately 3% in early trading as the electric two-wheeler manufacturer concluded its Rs 1,300 crore Qualified Institutional Placement (QIP) that garnered strong interest from institutional investors. The stock on the BSE fell by 3.02% to Rs 1,258 before recovering slightly to trade at Rs 1,277.45 by midday.
The company successfully raised Rs 1,300 crore through the QIP by issuing 1,08,15,307 equity shares to eligible institutional buyers at an issue price of Rs 1,202 per share. This issue price, higher than the regulatory floor price of Rs 1,169.70, demonstrated significant institutional demand despite being below the prevailing market price during the launch.
Ather Energy attracted prominent domestic mutual funds and global institutional investors through the oversubscribed QIP, exceeding eight times the subscription. The capital raised will enhance the company’s financial position, reducing debt reliance and enabling investments in research and development, manufacturing capacity expansion, and other growth strategies.
The fundraise has bolstered Ather Energy’s paid-up equity share capital to over Rs 39.41 crore. As the company expands its footprint in India’s electric two-wheeler market with the Ather Rizta family scooter and expands the Ather Grid fast-charging network nationwide, the recent fundraising aims to support these growth initiatives.
On the BSE, Ather Energy’s stock has ranged from a 52-week high of Rs 1,343 to a low of Rs 329.15. In the last reported quarter, the company narrowed its consolidated net loss to Rs 100.23 crore from Rs 234.36 crore in the same period of the previous financial year.
