Hero MotoCorp board approves Rs 550 cr additional investment in Ather Energy

Hero MotoCorp on Monday said it will invest an additional Rs 550 crore in Ather Energy.

The company's board, at its meeting held on September 4, 2023, has approved an investment of up to Rs 550 crore in the Rights issue of Ather Energy, Hero MotoCorp said in a regulatory filing.

The investment is subject to the execution of definitive documents and completion of certain conditions customary to a transaction of this nature, it added.

Prior to the proposed investment, Hero MotoCorp's shareholding in Ather stood at 33.1%, the country's largest two-wheeler said. The new investment is being made in Series E2 compulsory convertible preference shares.

Founded in 2013, Ather is engaged in the business of designing, manufacturing, selling, servicing electric two wheelers. Besides, Ather also has its own charging infrastructure and is engaged in storage, distribution and management of electric power (including energy in the form of batteries) and other ancillary services. Ather's turnover for the year ended March 2023 was Rs 1806.1 crore.

Ather has also partnered with state-run Bharat Petroleum Corporation Limited (BPCL) to expand its charging network.