Auto Giant Share Price Jumps 1.5% After Approving Rs 1,000 Crore Investment in Ather Energy
Join Us
Follow Us
Hero MotoCorp's Committee of Directors has approved an additional investment of up to Rs 1,000 crore in associate company Ather Energy Limited through a preferential allotment of equity shares or other eligible securities.
✨ Key Takeaways
On Wednesday, Indian equity benchmarks traded higher, with the benchmark Nifty 50 index gaining 0.56 per cent to 24,186.20. Amid the broader market strength, Hero MotoCorp Limited traded at Rs 4,949.00, up 1.45 per cent from the previous close, after the company announced that its Committee of Directors had approved an additional investment of up to Rs 1,000 crore in Ather Energy Limited, its associate company.
Committee Approves Additional Investment
Hero MotoCorp Limited informed that its Committee of Directors, at a meeting held on July 14, 2026, approved an investment of up to Rs 1,000 crore in Ather Energy Limited through the subscription of equity shares or other eligible securities representing equity shares, or securities convertible into or exchangeable for equity shares, including compulsorily convertible preference shares and warrants.
The investment will be made entirely in cash through a preferential allotment and is subject to the receipt of necessary approvals, including those from the Board of Directors and shareholders of Ather Energy. The transaction is expected to be completed within 15 days from the receipt of the final required approval.
Existing Stake and Transaction Details
As of June 30, 2026, Hero MotoCorp held 29.48 per cent of Ather Energy's paid-up share capital on a fully diluted basis.
The company said the investment qualifies as a related party transaction since Ather Energy is its associate company. The company's post-investment shareholding will depend on the pricing of Ather Energy's preferential issue and any subsequent issuance of securities.
Ather Energy's Financial Performance
Ather Energy Limited, incorporated in October 2013, is engaged in the design, manufacture, sale and servicing of electric two-wheelers, charging infrastructure, software solutions and battery energy management systems.
The company reported revenue of Rs 1,753.8 crore for FY24, which increased to Rs 2,255 crore in FY25 and further to Rs 3,671.76 crore in FY26, reflecting continued growth in its operations.
About Hero MotoCorp Limited
Hero MotoCorp Limited is one of the world's largest manufacturers of motorcycles and scooters by volume. The company manufactures and sells a wide range of two-wheelers across domestic and international markets.
The company has been expanding its presence in the electric mobility segment through its strategic investment in Ather Energy alongside its own electric vehicle initiatives.
Bank-shares-rise-4-after-safema-tribunal-dismisses-ed-appeal-fii-stake-at-619-58357" id="alsoread">Also Read - Private Bank Shares Rise 4% After SAFEMA Tribunal Dismisses ED Appeal; FII Stake at 6.19%
What are your thoughts on Hero MotoCorp's Rs 1,000 crore additional investment in Ather Energy? Share your views in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.