Hero MotoCorp on Tuesday approved an additional investment of up to Rs 1,000 crore in electric two-wheeler maker Ather Energy, reinforcing its long-term commitment to the EV company. The investment will be made through a subscription to equity shares or other convertible securities to be issued by Ather on a preferential basis, subject to approvals from the company’s board and shareholders.
The country’s largest two-wheeler maker said its committee of directors had approved the investment as well as the execution of a binding expression of interest and other transaction documents required for the deal. The investment will be made entirely in cash and is expected to be completed within 15 days of Ather receiving the last of the necessary approvals.
Hero MotoCorp currently holds a 29.48% stake in Ather on a fully diluted basis. The company said its shareholding after the proposed investment would depend on the pricing of the preferential issue and any subsequent issuance of securities approved by Ather’s board.
It also clarified that while Ather is an associate company and therefore a related party, the transaction would be undertaken on an arm’s length basis and no promoter or promoter group entity of Hero has any interest in the investment beyond the company’s existing shareholding.
Founded in 2013, Ather designs and manufactures electric two-wheelers and operates a charging network besides offering battery and energy management services. The company reported a turnover of Rs 3,671.76 crore in FY26, up from Rs 2,255 crore in FY25 and Rs 1,753.8 crore in FY24.