Hero MotoCorp to invest up to Rs 1,000 crore in Ather Energy via preferential issue
New Delhi, July 15
Hero MotoCorp Ltd has approved an additional investment of up to Rs 1,000 crore in electric two-wheeler maker Ather Energy, strengthening its strategic bet on the fast-growing EV segment, Hero said in an exchange filing on Tuesday.
The company said its Committee of Directors (COD), at a meeting held on July 14, approved the subscription to equity shares or other eligible securities of Ather through a preferential allotment. The investment will be made in cash and is subject to the necessary approvals from Ather's board and shareholders.
Hero MotoCorp currently holds 29.48 per cent of Ather's paid-up share capital on a fully diluted basis as of June 30, 2026. The final change in Hero's shareholding will depend on the pricing of the preferential issue and any further issuance of securities approved by Ather.
The transaction for this investment is expected to be completed within 15 days from the receipt of the final approvals required by Ather Energy.
Ather, founded in 2013, designs, manufactures and sells electric scooters and operates charging infrastructure across India. The company is also engaged in storage, distribution and management of electric power, including battery-related services. The company reported a turnover of Rs 3,671.76 crore for the financial year ended March 31, 2026, compared with Rs 2,255 crore in FY25 and Rs 1,753.8 crore in FY24, reflecting strong growth in India's electric vehicle market.
The investment comes as Ather continues to scale up its operations and improve revenues. The company's turnover has risen sharply over the past three years.
Hero MotoCorp said the transaction qualifies as a related-party transaction because Ather is an associate company, but it will be carried out on an arm's length basis. The company also clarified that no promoter, promoter group or group company has any direct interest in the additional investment.
The proposed infusion is expected to provide Ather with fresh capital to support expansion of manufacturing capacity, product development, charging infrastructure and other growth initiatives in India's rapidly expanding electric mobility market.
Shares of Hero MotoCorp ended slightly higher at Rs. 4,880.70 on the National Stock Exchange on Wednesday.
— ANI
Reader Comments
Good news for the EV ecosystem but I hope Ather uses this capital wisely. The company has been burning cash despite revenue growth. Rs 1,000 crore is a big sum - needs to focus on profitability and not just expansion. Also, arm's length related-party transaction sounds good but we need transparency on pricing.
Interesting move from Hero MotoCorp. They already hold 29.48% and now adding another Rs 1,000 crore. Shows confidence in Ather's product roadmap and the Indian EV story. But curious how this affects Ola Electric's market share given the intense competition. The charging infrastructure expansion could be a game-changer for adoption.
As someone who owns an Ather 450X, I can vouch for the product quality - it's superb! But the charging infrastructure still needs massive improvement, especially on highways. Hope this Rs 1,000 crore investment addresses that. Also, battery swapping should be part of their growth strategy. Good move overall. 👍
Impressive growth numbers from Ather - revenue nearly doubled from FY24 to FY26. Hero is smart to increase stake before Ather potentially goes public. The EV market in India is still in early stages and this investment could yield great returns. But I hope the pricing of preferential issue is fair to minority shareholders.
While this looks good on paper, I'm a bit skeptical. Hero already had a significant stake, and now another Rs 1,000 crore? The EV segment is still loss-making for most players. Ather needs to show a clear path to profitability. Also, competition from Bajaj-Chetak, TVS iQube and Ola is getting fierce. Hope this money isn't just thrown at marketing. 🤔
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