New Delhi, July 17 -- Electric two-wheeler maker Ather Energy has approved the first tranche of its Rs.2,500 crore capital-raising plan, with its board clearing a Rs.1,200 crore preferential issue backed by Hero MotoCorp, the government-backed India-Japan Fund (IJF), and the company's founders.

According to the company's regulatory filing with the stock exchanges, the preferential issue is subject to shareholder approval through an Extraordinary General Meeting (EGM). The fresh capital will be used to strengthen Ather's balance sheet while supporting investments in manufacturing, research and development, product innovation, and business expansion.

The fundraising comes as India's electric two-wheeler market enters a new phase of compet...