New Delhi: Hero MotoCorp is set to acquire additional equity shares in electric two-wheeler maker Ather Energy for up to Rs 1,758 crore, increasing its stake in the company to around 32.8 percent.
The transaction was approved by the company’s Committee of Directors on Thursday and will be funded entirely through cash consideration.
Hero MotoCorp will purchase the shares from an existing shareholder of Ather Energy rather than through a fresh issue of shares by the company.
The transaction is expected to close by 3 September 2026, and does not require any governmental or regulatory approvals, according to the company’s filing with the stock exchanges.
Hero MotoCorp currently holds a 29.88 percent stake in Ather Energy on a fully diluted basis. Following the proposed acquisition, its shareholding is expected to increase to approximately 32.8 percent.
Ather Energy has recorded growth in turnover over the past three financial years. Its turnover stood at Rs 1,753.8 crore for the financial year ended 31 March 2024, increased to Rs 2,255 crore in FY25 and rose further to Rs 3,671.76 crore in FY26.
Hero MotoCorp and Ather Energy have maintained an associate relationship, with Hero MotoCorp providing capital support as Ather scaled its operations. Ather has also expanded its product line-up and charging network across the country during this period.
The latest acquisition will further increase Hero MotoCorp’s holding in Ather Energy.
The transaction is being undertaken through the purchase of existing shares and, therefore, will not involve a fresh issue of equity by Ather. (BVI)
