Hero MotoCorp, one of India's leading two-wheeler manufacturers, on Monday (September 4) announced a Rs 550 crore investment in the rights issue of Ather Energy Private Ltd.
In a stock exchange filing, Hero MotoCorp said this move reinforces its commitment to strengthening its association with Ather, in which it is an existing shareholder.
The investment comprises Series E2 Compulsory Convertible Preference Shares and is a strategic decision by Hero MotoCorp to deepen its involvement in the electric mobility sector, the automaker said.
Prior to this investment, Hero MotoCorp held a 33.1 percent stake (on a fully diluted basis) in Ather Energy. Following the investment, Hero MotoCorp's shareholding in Ather will increase, with the exact percentage to be determined upon the completion of a round of fundraising by Ather.
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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.
Additionally, Ather is involved in the storage, distribution, and management of electric power and ancillary services.
It has a significant presence across India and has demonstrated remarkable growth over the years. In the fiscal year ending in March 2023, the company reported a turnover of Rs 1,806.1 crore, a substantial increase compared to Rs 413.8 crore in March 2022 and Rs 79.8 crore in March 2021.
Ather Energy has not only established itself as a prominent player in the electric two-wheeler market but has also made strides in developing a comprehensive charging infrastructure and energy management systems, which aligns with the broader goals of promoting electric mobility in India.
Shares of Hero Motocorp Ltd ended at Rs 2,947.35, up by Rs 20.30, or 0.69 percent, on the BSE.
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