The Hindu Bureau

The Government of India will invest ₹200 crore in Ather Energy through India-Japan Fund (IJF) a joint investment vehicle backed by the government of India and the Japan Bank for International Cooperation (JBIC).

This partnership between the government of India and Japan Bank of International Cooperation, is part of the round, thus marking a direct government stake in Ather Energy, one of India’s homegrown electric vehicle manufacturers.

Ather’s founders Tarun Mehta and Swapnil Jain are also participating in the round, investing ₹20 crore each, along with other existing promoters and IJF. Hero MotoCorp (HMC) is set to invest ₹960 crore as part of the round, according to Ather Energy’s regulatory filing on Wednesday.

All promoter investments in the round are being made at a ₹85 premium to the Securities and Exchange Board of India (SEBI)-mandated floor price. The company will issue 79.36 lakh warrants at ₹1,260 per warrant to HMC and promoters, and 16.26 lakh equity shares at ₹1,230 per share to IJF.

The company’s board had earlier approved a preferential allotment of about ₹1,000 crore. To accommodate the government-backed investment, the size of the allotment has now been increased by 20% thereby making it ₹ 1,200 crore, Ather further said in the filing.