Hero MotoCorp invests ₹9.6 billion in Ather Energy warrants

Hero MotoCorp has subscribed to convertible warrants worth approximately ₹9.6 billion (Rs. 960 crore) in Ather Energy, deepening its commitment to the electric vehicle manufacturer. This transaction is part of a broader plan by Hero MotoCorp to invest up to ₹10 billion in the electric two-wheeler maker.

Hero MotoCorp subscribed to 7,619,047 convertible warrants priced at ₹1,260 each. The company has paid ₹2.4 billion upfront, representing 25% of the issue price, with the remaining ₹7.2 billion payable upon the exercise and conversion of the warrants into equity shares. Following the conversion, Hero MotoCorp’s fully diluted holding in Ather is expected to increase from 29.48% to approximately 30.68%.

Ather Energy’s ₹1,200-crore preferential issue also included participation from the India-Japan Fund and Ather’s co-founders, Tarun Mehta and Swapnil Jain. The capital raised is intended to support research and development, marketing, debt repayment, and the ongoing Factory 3.0 project in Maharashtra.