Ather Energy Secures Capital through Preferential Issue, Allocating Equity Shares and Warrants to Key Investors
Ather Energy Limited has successfully concluded a capital raising initiative through a preferential issue, approving the allotment of equity shares and convertible warrants. The Board of Directors approved the transaction aimed at raising up to INR 1,200 Crores (Indian Rupees Twelve Hundred Crores only).The preferential issuance involved two primary components: the placement of fully paid-up equity shares to an institutional investor and the allocation of convertible warrants to corporate partners and company promoters.
Capital Allocation Details
Under the terms of the issue, 16,26,016 Equity Shares were issued at an Issue price of INR 1,230 each. This allotment was made to India-Japan Fund (IJF), a Category II AIF and Qualified Institutional Buyer (QIB). The subscription amount for IJF totaled INR 1,99,99,99,680.Simultaneously, 79,36,507 convertible warrants were issued at an Issue price of INR 1,260 per warrant. These warrants were allotted to Hero MotoCorp Limited (HMC), Mr. Tarun Sanjay Mehta, and Mr. Swapnil Babanlal Jain. The total amounts subscribed for these warrants were distributed as follows:
| Proposed Allottee | Category | Securities Allotted | Aggregate Subscription Amount |
|---|---|---|---|
| India-Japan Fund (IJF) | Non-Promoter, QIB | 16,26,016 Equity Shares | INR 1,99,99,99,680 |
| Hero MotoCorp Limited (HMC) | Promoter | 76,19,047 Warrants | INR 9,59,99,99,220 |
| Mr. Tarun Sanjay Mehta | Promoter | 1,58,730 Warrants | INR 19,99,99,800 |
| Mr. Swapnil Babanlal Jain | Promoter | 1,58,730 Warrants | INR 19,99,99,800 |
Investor Details and Terms of the Issue
The transaction was conducted as a preferential issue on a private placement basis. The terms of the issuance dictate that for the warrants issued, an amount equivalent to 25% of the Warrant Issue Price must be paid at the time of subscription. The remaining 75% is payable upon the exercise of the conversion options into Equity Shares.The tenure of the allotted Warrants shall not exceed eighteen months from the date of allotment. If a warrant holder fails to convert their instrument within this period, the unconverted warrants will lapse, and the amount paid for them will be forfeited.
The pre- and post-preferential issue shareholding details for the four proposed allottees are provided below:
| Investor Name | Pre-Issue Equity Shares Held (No.) | Pre-Issue Holding (%) | Post-Issue Equity Shares (No.) | Post-Issue Holding (%) |
|---|---|---|---|---|
| India-Japan Fund | 2,24,65,447 | 5.75% | 24,091,463 | 6.02% |
| Hero MotoCorp Limited | 11,50,83,252 | 29.48% | 122,702,299 | 30.68% |
| Mr. Tarun Sanjay Mehta | 1,92,57,732 | 4.93% | 19,416,462 | 4.85% |
| Mr. Swapnil Babanlal Jain | 1,92,57,732 | 4.93% | 19,416,462 | 4.85% |
ATHERENERG Stock Price Movement
As of 2:35 PM, Ather Energy Limited shares are surging in live trading at ₹1296.4, up 7.87% as the stock climbs robustly through its daily session. The momentum is exceptional as the equity breaches its 52-week high mark while trading on a volume of 15.2 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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