Two-wheeler maker Hero MotoCorp Ltd on Thursday (December 14) said it will an additional stake in electric two-wheeler-maker Ather Energy for up to ₹140 crore. The transaction is poised to raise Hero MotoCorp's stake in Ather Energy from the current 36.6% to 39.7%.
The acquisition, expected to be completed by January 31, 2024, involves the purchase of additional shares from an existing shareholder of Ather, according to a stock exchange filing.
Back in September, Hero MotoCorp announced a ₹550 crore investment in the rights issue of Ather Energy Private Ltd. The investment comprised Series E2 Compulsory Convertible Preference Shares and was aimed at deepening Hero MotoCorp's involvement in the electric mobility sector.
Before this investment, Hero MotoCorp held a 33.1% stake (on a fully diluted basis) in Ather Energy.
Ather Energy, established in October 2013, is engaged in various aspects of the electric mobility ecosystem. This includes designing, manufacturing, selling, servicing, and software development for electric automobiles and charging infrastructure.
With a comprehensive approach, Ather also manages its charging infrastructure and plays a vital role in the storage, distribution, and management of electric power, including battery energy.
It has a presence across India. In the fiscal ending in March 2023, the company reported a turnover of ₹1,806.1 crore, a substantial increase compared to ₹413.8 crore in March 2022 and ₹79.8 crore in March 2021.
Shares of Hero Motocorp Ltd ended at ₹3,880.95, down by ₹16.65, or 0.43%, on the BSE.
