Hero MotoCorp invests Rs 140 crore to acquire additional 3% stake in Ather Energy
Hero MotoCorp, the largest shareholder in Ather Energy, has boosted its position in the company by acquiring new shares for Rs 140 crore. Hero's stake in Ather will now grow from 36.7 percent to 39.7 percent.
According to a regulatory filing, the acquisition of additional stakes will be completed by January 31, 2024. Interestingly, Ather Energy obtained Rs 900 crore through a rights offering from Hero MotoCorp and GIC in September 2023. The monies were used to develop new products and extend the charging and retail network.
Ather Energy, which was founded in October 2013, is involved in several parts of the EV ecosystem. This involves designing, producing, selling, servicing, and developing software for electric vehicles and charging infrastructure.
In addition, Ather has its own charging infrastructure and is involved in the storage, distribution, and control of electric power (including energy in the form of batteries) as well as other auxiliary services.
The EV manufacturer has sold 100,416 e-scooters this year (as of December 15, 2023), ranking it third in India behind TVS Motors and Ola Electric.
Hero's investment in Ather comes as Ola Electric prepares to submit a Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (Sebi) early next week in preparation for an initial public offering (IPO).
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