Hero MotoCorp investment in Ather Energy

Hero MotoCorp has significantly increased its investment in electric vehicle manufacturer Ather Energy through a series of financial transactions.

Initially, Hero MotoCorp subscribed to convertible warrants worth approximately ₹9.6 billion. This transaction involved an upfront payment of ₹2.4 billion, with the intention of increasing its fully diluted holding in Ather from 29.48% to approximately 30.68% upon conversion. The capital raised was designated for research and development, marketing, debt repayment, and the ‘Factory 3.0 project’ in Maharashtra.

Subsequently, Hero MotoCorp expanded its stake further to 32.8% through a ₹1,758 crore block deal. This involved purchasing approximately 1.18 crore shares from the Singapore government via an open market transaction. These funds are also intended to support Ather’s expansion and the ‘Factory 3.0 project’ in Chhatrapati Sambhajinagar, which aims to reach an annual production capacity of 1.42 million units. During this period, Ather Energy reported an 89% year-on-year increase in operating revenue for Q1 FY27 and a 71% reduction in net losses.