Hero MotoCorp Ltd has decided to invest ₹1,000 crore in Ather Energy Ltd, an associate company, through subscription to a preferential issue, strengthening its exposure to India’s growing electric two-wheeler market.
Ather Energy has allotted 76,19,047 convertible warrants to Hero MotoCorp on a preferential basis at an issue price of ₹1,260 per warrant, involving an aggregate subscription amount of ₹960 crore. Each warrant will be convertible into one equity share of Ather.
Investment strengthens EV partnership
Hero MotoCorp has paid ₹240 crore, equivalent to 25% of the issue price per warrant. The remaining 75% will be payable when the company exercises the warrants and converts them into equity shares of Ather.
The investment comes as Ather continues to expand its electric scooter portfolio and retail and charging infrastructure in India. Hero MotoCorp has been an investor in Ather and has increased its strategic exposure to the electric mobility segment through the partnership.
Ather expands electric mobility presence
Ather has built a presence in India’s electric two-wheeler market through its range of connected electric scooters, supported by its proprietary technology, charging ecosystem and retail network.
The transaction will provide Ather with additional capital to support its growth plans, while enabling Hero MotoCorp to strengthen its participation in the rapidly evolving electric mobility ecosystem.
The preferential issue has been undertaken in accordance with the Companies Act, 2013 and SEBI’s Issue of Capital and Disclosure Requirements Regulations, 2018.