The company’s board has approved the investment in one or more tranches. Prior to the proposed investment, Hero MotoCorp’s shareholding in Ather Energy was 34.8% (on a fully diluted basis).
Hero MotoCorp, the the world’s largest manufacturer of motorcycles and scooters, announced on January 14 its new investment of up to Rs 420 crore in Ather Energy. The two-wheeler major’s board has approved the investment in one or more tranches, according to a press release.
Prior to the proposed investment, Hero MotoCorp’s shareholding in Ather Energy was 34.8% (on a fully diluted basis).
Post the investment, Hero’s shareholding in Ather Energy will increase and the exact shareholding will be determined upon completion of the capital raise round by Ather, according to a press release.
It is also subject to execution of definitive documents and completion of certain conditions customary to a transaction of this nature.
The investment comes at the backdrop of a price hike that Ather Energy has announced for its electric scooters. Earlier in the day, Ather informed an increase of about Rs 5,500 for its electric scooters, citing rising input costs as the reason.
Meanwhile, Swadesh Srivastava, Head of the Emerging Mobility Business Unit at HeroMoto Corp said, “We were one of the early investors in Ather Energy and have continued to expand our association over the years. We are excited to see the growth of Ather Energy in recent years. Our aim is to expand the Hero MotoCorp brand promise and make EV ownership a convenient, hassle-free, and rewarding experience for customers across the world.”
The company is exploring other collaborations with Ather Energy as well, in various spheres, such as charging infrastructure, technology and sourcing.
Hero MotoCorp is also gearing up to unveil its first electric vehicle (EV) in the month of March this year. It is being developed at the company’s R&D set-up – the Center of Innovation and Technology (CIT) in Jaipur and the Tech Center Germany (TGG) near Munich – and will be produced at the company’s manufacturing facility at Chittoor, Andhra Pradesh.