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Indian two-wheeler maker Hero MotoCorp has announced plans to increase its stake in electric two-wheeler manufacturer Ather Energy.
As stated in a regulatory filing by Hero MotoCorp, the company will purchase an additional 2.2% stake for approximately Rs 124 crore by buying additional shares from an existing shareholder of Ather Energy.
The transaction is expected to be completed by July 31, 2024
Hero MotoCorp's earlier acquisition
The move follows Hero MotoCorp's earlier acquisition of an additional 3% stake in Ather Energy for Rs 140 crore, raising its overall shareholding to 39.7%.
It's worth noting that Hero MotoCorp is a significant investor in Ather Energy, which also includes notable stakeholders like Tiger Global and GIC of Singapore. Following this latest transaction, Hero MotoCorp's total stake in Ather Energy will increase to approximately 41.9%.
Ather Energy's recent funding
Ather Energy has recently raised Rs 286 crore through a mix of debt and equity.
Stride Ventures invested Rs 200 crore through non-convertible debentures, while Ather's co-founders, Tarun Sanjay Mehta and Swapnil Babanlal Jain, each contributed Rs 43.28 crore through Series F compulsory convertible preference shares.
The EV startup, which competes with Bhavish Aggarwal-led Ola Electric, reported a turnover of Rs 1,753.8 crore for the fiscal year ending March 31, 2024, slightly down from Rs 1,784 crore in the previous fiscal year.
Founded in 2013 and based in Bengaluru, Ather Energy is a leading player in India's electric two-wheeler market.
The startup designs, manufactures, and sells electric two-wheelers, including popular models such as the Ather 450X, Ather 450 Plus, and Ather 450S. Ather also has an extensive network of over 1,400 charging stations across 100 cities.
Hero MotoCorp's market presence
Hero MotoCorp is a dominant player in the Indian two-wheeler market, known for manufacturing and selling motorised two-wheelers and related services.
In Q4 FY24, the company reported an 18.29% increase in standalone net profit to Rs 1,016.05 crore and a 14.6% rise in revenue to Rs 9,519.30 crore compared to the same period last year.