5 days ago
Hero MotoCorp’s ₹1,758 Crore Ather Deal Lifts Stake to 32.8%
Hero MotoCorp wants to buy more of Ather Energy, which makes electric scooters.
The purchase could cost as much as ₹1,758 crore.
Hero already owns 29.88% of Ather.
After the purchase, Hero could own about 32.8% of the company.
A large group of Ather shares was traded for ₹1,480 each, although the seller was not named.
Ather’s share price went up after news of the investment.
Reports described the early gain differently, ranging from more than 5% to nearly 10%.
Ather has also raised money to expand its factories and improve its products and technology.
The deal is expected to be completed by September 3.
Hero MotoCorp approved an additional cash investment of up to ₹1,758 crore in Ather Energy.
The investment is expected to raise Hero MotoCorp’s fully diluted Ather stake from 29.88% to about 32.8%.
A block transaction involved nearly 1.19 crore Ather shares, or approximately 3% of equity, at ₹1,480 per share.
Ather shares rose more than 5% in early trading, with one report describing a gain of nearly 10%; the transaction is expected to close by September 3.
Ather reported FY26 turnover of ₹3,671.76 crore, while recent fundraising of ₹2,500 crore is intended for manufacturing, technology and balance-sheet improvements.
- Who
- Hero MotoCorp and Ather Energy are involved; the seller of the shares was described as an existing investor but was not identified.
- What
- Hero MotoCorp approved buying additional Ather Energy equity shares worth up to ₹1,758 crore, potentially raising its stake to about 32.8%.
- Where
- The transaction was announced through Hero MotoCorp’s exchange filing, while Ather shares traded on the BSE and NSE.
- When
- Hero announced the investment on August 27; the block transaction and market reaction were reported on August 28, with completion expected by September 3.
- Why
- The purchase is intended to increase Hero MotoCorp’s ownership of Ather and strengthen its position in the electric two-wheeler segment.
Key facts
- Additional investment
- Up to ₹1,758 crore in cash
- Expected stake
- Approximately 32.8% on a fully diluted basis
- Existing stake
- 29.88% as of August 25
- Block transaction
- Nearly 1.19 crore shares, representing about 3% of Ather’s equity
- Block-deal price
- ₹1,480 per share
- Expected completion
- September 3
- Ather turnover
- ₹3,671.76 crore in FY26, compared with ₹2,255 crore in FY25 and ₹1,753.8 crore in FY24
- Recent capital raised
- About ₹2,500 crore through a ₹1,200 crore preferential issue and a ₹1,300 crore QIP
Quotes
Sudeep Shah
Head of Technical and Derivatives Research at SBI Securities
“Hence, we recommend accumulating the stock in the ₹1,592–1,607 range, with a stop-loss at ₹1,550. On the upside, the stock has the potential to move towards ₹1,715 in the short term.”
livemint.com
Sources
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