Ather Energy has announced plans to raise up to ₹1,200 crore from existing investors, with Hero MotoCorp contributing the bulk of the investment. The fresh capital, approved by the manufacturer's board on Wednesday, will also come from the India-Japan Fund and Ather's own promoters, and will be used to expand manufacturing capacity, fund research and development, reduce debt and meet other corporate requirements.Hero MotoCorp will invest ₹960 crore as part of Ather Energy's ₹1,200 crore fundraising plan backed by existing investors.Hero MotoCorp will invest ₹960 crore through the subscription of 76,19,047 warrants. Each warrant is priced at ₹1,260 and can be converted into one equity share with a face value of Re 1.Hero MotoCorp shareholding increaseThe investment will increase Hero MotoCorp's shareholding in Ather Energy from 29.48 per cent to 30.68 per cent after the preferential allotment, strengthening its position as the electric two-wheeler maker's largest shareholder.India-Japan fund stakeThe India-Japan Fund will invest nearly ₹200 crore by subscribing to 16,26,016 equity shares priced at ₹1,230 each. The fund, backed by anchor investors including the Government of India and the Japan Bank for International Cooperation, will see its stake in Ather rise from 5.75 per cent to 6.02 per cent.Ather's co-founders, Tarun Sanjay Mehta and Swapnil Babanlal Jain, will also participate in the fundraise. Each promoter will subscribe to 1,58,730 warrants at ₹1,230 per warrant, investing ₹20 crore individually.Although both founders are investing additional capital, their shareholding will decline slightly from 4.93 per cent to 4.85 per cent each because of the increase in the company's total equity following the preferential issue.Funds to support growth plansAccording to the company's regulatory filing, the proceeds will be used for research and development, marketing, debt repayment and general corporate purposes. A significant portion of the capital will also support the ongoing Factory 3.0 project at Chhatrapati Sambhajinagar in Maharashtra.Once completed, the new manufacturing facility is expected to increase Ather Energy's installed production capacity to 1.42 million units annually. The expansion is aimed at supporting the company's long-term growth as competition intensifies in India's electric two-wheeler market.The latest capital infusion comes from investors who already have stakes in Ather, signalling continued support for the Bengaluru-based EV manufacturer as it scales production, expands its product portfolio and strengthens its manufacturing footprint.(With inputs from PTI)