Hero MotoCorp to invest Rs 1,000 crore more in EV maker Ather Energy

Hero MotoCorp has approved an additional investment of up to Rs 1,000 crore in EV maker Ather Energy via preferential allotment, strengthening its bet on the fast-growing EV segment. The transaction is expected to be completed within 15 days.

Hero MotoCorp Ltd has approved an additional investment of up to Rs 1,000 crore in electric two-wheeler maker Ather Energy, strengthening its strategic bet on the fast-growing EV segment, Hero said in an exchange filing on Tuesday.

Investment Details

The company said its Committee of Directors (COD), at a meeting held on July 14, approved the subscription to equity shares or other eligible securities of Ather through a preferential allotment. The investment will be made in cash and is subject to the necessary approvals from Ather's board and shareholders.

Hero MotoCorp currently holds 29.48 per cent of Ather's paid-up share capital on a fully diluted basis as of June 30, 2026. The final change in Hero's shareholding will depend on the pricing of the preferential issue and any further issuance of securities approved by Ather. The transaction for this investment is expected to be completed within 15 days from the receipt of the final approvals required by Ather Energy.

Ather's Profile and Growth

Ather, founded in 2013, designs, manufactures and sells electric scooters and operates charging infrastructure across India. The company is also engaged in storage, distribution and management of electric power, including battery-related services.

The company reported a turnover of Rs 3,671.76 crore for the financial year ended March 31, 2026, compared with Rs 2,255 crore in FY25 and Rs 1,753.8 crore in FY24, reflecting strong growth in India's electric vehicle market. The investment comes as Ather continues to scale up its operations and improve revenues. The company's turnover has risen sharply over the past three years.

Transaction Context and Purpose

Hero MotoCorp said the transaction qualifies as a related-party transaction because Ather is an associate company, but it will be carried out on an arm's length basis. The company also clarified that no promoter, promoter group or group company has any direct interest in the additional investment. The proposed infusion is expected to provide Ather with fresh capital to support expansion of manufacturing capacity, product development, charging infrastructure and other growth initiatives in India's rapidly expanding electric mobility market.

Market Reaction

Shares of Hero MotoCorp ended slightly higher at Rs. 4,880.70 on the National Stock Exchange on Wednesday. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)