Hero MotoCorp jumps 5% after board approves additional investment in Ather Energy, Auto News, ET Auto
Shares of Hero MotoCorp jumped 5% in early trade Monday as the country’s largest two-wheeler maker said its board approved an additional investment of up to Rs 420 crore in electric two-wheeler company Ather Energy.
The company’s board has approved the investment in one or more tranches.
The counter rose to a high of Rs 2,703.95 against the previous close of Rs 2,569.70 on the National Stock Exchange.
Before this, Hero’s shareholding in Ather Energy was 34.8%, reports said, adding that the exact increase in shareholding will be determined upon completion of the fundraising plan.
“We are excited to see the growth of Ather Energy in recent years. Our aim is to expand the Hero Motocorp brand promise and make EV (electric vehicle) ownership a convenient, hassle-free, and rewarding experience for customers across the world,” Swadesh Srivastava, Head – Emerging Mobility Business Unit at Hero, was quoted as saying in reports.
The company said it is addressing the emerging mobility opportunity through organic and inorganic initiatives, reports said.
This is the fifth time Hero MotoCorp, which has yet to enter the electric two-wheeler market, is investing in Ather Energy.
Its first investment was in 2016 when it became a strategic partner. In October 2021, Hero MotoCorp became the first company to adopt Ather Energy’s fast-charging technology for its electric scooter slated to be launched in March.
Hero Motocorp is preparing for the rollout of its first EV in March 2022.
“Through its investments and partnerships with external partners like Ather Energy and Gogoro Inc, Hero MotoCorp is also working towards building the entire EV ecosystem — from products to technology, to sales, service, customer care, operations, and innovation,” the company was quoted as saying in reports.