Hero MotoCorp To Invest Rs 550 Crore In Rights Issue Of Ather Energy

The board of directors of Hero MotoCorp Ltd. has approved a Rs 550 crore investment in the rights issue of Ather Energy Pvt. Ltd., a manufacturer of electric two-wheelers. The maker of Splendour, which presently owns 33.1% of Ather, will have a larger stake in the business. Before the end of September, it is anticipated that the transaction will be finished.

"The Board of Directors of the Company at its meeting held on September 4, 2023 has approved an investment of up to INR 550 crore (Rupees five hundred fifty crore), in the Rights issue of Ather Energy Private Limited. The investment is subject to the execution of definitive documents and completion of certain conditions customary to a transaction of this nature," Hero MotoCorp said in a statement.

Hero Motocorp already has a sizeable stake in Ather and previously invested more than Rs 1000 crore in the business during earlier rounds of funding.

In 2016, Hero Motorcorp made its first investment in the EV startup; the company now owns 33.1% of it. Following the rights offering, which is anticipated to be completed by September 30, its shares will further rise.

The fundraising effort takes place at a time when the electric two-wheeler industry is going through a difficult period as a result of the reduction in FAME-II subsidies, which is limiting the sector's growth.

Ather is a private limited company, which was incorporated in India on October 21, 2013. It is engaged in the business of (a) designing, manufacturing, producing, selling, servicing, software development, and software management, in relation to electric automobiles and charging infrastructure; and (b) storage, distribution, and management systems, or otherwise all forms of electric power (including energy in the form of batteries) and other ancillary services.

Following the development, the shares of Hero MotoCorp on the BSE is Rs 2,956.30 per share, trading 0.45% up from its previous close. It opened at Rs 2,971.95 per share. Stock declined 1.04% in 1 week, and gained 10.84% in 1 year.

Following the development, the shares of Hero MotoCorp on the BSE is Rs 2,956.30 per share, trading 0.45% up from its previous close. It opened at Rs 2,971.95 per share. Stock declined 1.04% in 1 week, and gained 10.84% in 1 year.