Hero MotoCorp Increases Stake in Ather Energy by 2.2% for Rs 124 Crore

Hero MotoCorp has announced an increase in its stake in Ather Energy, purchasing an additional 2.2% stake for approximately Rs 124 crore. This acquisition was detailed in a recent filing with the stock exchanges, where Hero MotoCorp’s board confirmed the investment through the purchase of additional shares from an existing shareholder of Ather Energy.

This move follows an earlier share purchase by Hero MotoCorp, where the company acquired an additional 3% stake in Ather Energy for Rs 140 crore. As a significant investor in Ather, Hero MotoCorp joins other prominent stakeholders, including Tiger Global and GIC of Singapore.

Ather Energy has been proactive in securing funds to fuel its growth. Recently, the company raised Rs 286 crore through a blend of debt and equity. Venture debt firm Stride Ventures contributed Rs 200 crore through non-convertible debentures, while Ather co-founders Tarun Sanjay Mehta and Swapnil Babanlal Jain each invested Rs 43.28 crore via Series F compulsory convertible preference shares. This funding round came nine months after Ather secured Rs 900 crore from Hero MotoCorp and GIC through a rights issue, as the company gears up for an IPO.

For the fiscal year 2024 (FY24), Ather Energy reported a turnover of Rs 1,753.8 crore, slightly down from Rs 1,784 crore in FY23. Founded in 2013, the Bengaluru-based EV manufacturer has made significant strides in the Indian two-wheeler market with its flagship brands—Ather 450X, Ather 450 Plus, and Ather 450S. Additionally, Ather has established a robust network of over 1,400 charging stations across 100 cities, reinforcing its market presence.

Hero MotoCorp’s increased investment in Ather Energy is a testament to its commitment to the EV sector. With Ather emerging as a leading brand in the Indian two-wheeler EV market, it faces stiff competition from rivals such as Ola Electric.