Electric scooter maker Ather Energy has approved a plan to raise up to ₹2,500 crore as the company looks to increase production, expand its business, and launch new products in the coming months.
The decision was taken during a board meeting held on June 12, 2026. The company is seeing strong demand for its electric scooters and needs additional funds to support its next phase of growth.
This will be Ather’s first major fundraising exercise since its IPO in May 2025, when the company raised ₹2,981 crore from public investors.
Ather to Raise Funds Through QIP and Other Routes
Ather Energy’s board has approved a proposal to raise up to ₹2,500 crore in one or more phases.
Out of the total amount, the company plans to raise up to ₹1,500 crore through a Qualified Institutional Placement (QIP), a method that allows listed companies to raise money from institutional investors.
The remaining ₹1,000 crore may be raised through different financial instruments, including equity shares, Foreign Currency Convertible Bonds (FCCBs), preferential allotments, private placements, rights issues, or other convertible securities.
To manage the fundraising process, the company has formed a special fund-raise committee. However, the plan will still require approvals from shareholders and regulatory authorities before it can move forward.
As part of regulatory requirements, Ather also announced that the trading window for designated persons would remain closed until 48 hours after the board meeting outcome was officially disclosed.
Investors reacted positively to the fundraising plans. After Ather first informed the stock exchanges about the upcoming board meeting on June 8, the company’s shares gained momentum. The stock rose 1.20% to ₹1,014.35 and later ended the week at ₹1,028.15 on the BSE.
Strong Demand Creates Need for More Production Capacity
One of the biggest reasons behind the fundraising plan is the growing demand for Ather’s electric scooters.
Ather co-founder and CEO Tarun Mehta recently said that the company’s current manufacturing facilities are operating at more than 90% capacity. He added that the company is exploring ways to increase production further to meet customer demand.
A major contributor to this growth has been the Rizta scooter. The family-focused scooter recently crossed 3 lakh sales within two years of its launch and has become one of the company’s most successful products.
The Rizta has also played a key role in increasing Ather’s market presence. It contributed around 76% of the company’s total sales volume in FY26 and helped Ather expand its market share to 18.6%.
With demand continuing to rise, the company needs additional manufacturing capacity to avoid supply constraints and support future growth.
Factory 3.0 and New Affordable Scooters Drive Future Plans
A large part of the fresh capital is expected to be used for Ather’s upcoming Factory 3.0 in Chhatrapati Sambhajinagar, Maharashtra.
The new facility is an important part of the company’s expansion plans. Once fully developed, it will have the capacity to produce up to 10 lakh vehicles annually. In the first phase, the factory will add production capacity for 5 lakh units per year.
The plant was originally expected to start commercial operations in July 2026. However, the launch has been delayed to October 2026 due to pending environmental approvals.
After Factory 3.0 becomes operational, Ather’s total annual manufacturing capacity is expected to reach around 1.42 million units.
The company is also preparing to launch its new EL platform scooters around October 2026. These scooters are expected to target the mass-market segment priced between ₹1 lakh and ₹1.25 lakh.
To keep costs lower, the new scooters will use steel frames instead of the more expensive aluminium frames used in Ather’s premium models. This move is expected to improve profit margins and help the company compete more effectively with established rivals such as TVS Motor and Bajaj Auto.
With production running near full capacity, a new factory under development, and affordable scooters set to launch later this year, Ather’s ₹2,500 crore fundraising plan highlights its focus on expanding operations and strengthening its position in India’s fast-growing electric vehicle market.