5 days ago

Promoter Premium Investments Put Piramal Finance, Ather Energy Under Spotlight

Promoter Premium Investments Put Piramal Finance, Ather Energy Under Spotlight
2 Promoters invest in their own companies at a premium. Is the market missing something? · financialexpress.com

Piramal Finance and Ather Energy are raising money to expand their businesses.

Big investors are buying shares through a process called a QIP.

The companies’ promoters, who are closely connected to the businesses, are also promising to invest more money through warrants.

In both cases, the promoters agreed to prices higher than the minimum QIP price.

Piramal Finance plans to use the money to provide more loans and strengthen its finances.

Ather Energy plans to build a larger factory and develop new products.

Piramal’s profits and loan business have been growing, while its bad-loan ratio has improved.

Ather is selling more scooters, losing less money and has reported its first positive EBITDA quarter.

The important question is whether both companies can use the new money successfully and keep growing.

Key facts

Piramal QIP floor price
₹2,102.65 per share
Piramal promoter warrants
Up to ₹1,750 crore through 82.94 lakh warrants priced at ₹2,110 each
Ather QIP
₹1,300 crore raised at ₹1,202 per share after being oversubscribed roughly eight times
Ather promoter warrants
Hero MotoCorp, Tarun Mehta and Swapnil Jain were offered warrants at ₹1,260 each
Piramal Q1FY27 performance
Net profit rose 67% year-on-year to ₹461 crore; assets under management reached ₹1.07 lakh crore
Ather Q1FY27 performance
Revenue rose 88.7% year-on-year to ₹1,217 crore, while net loss narrowed to ₹51 crore
Factory 3.0 capacity
The planned facility is expected to reach annual capacity of 1 million units when fully scaled

Sources

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