The share price of Hero MotoCorp surged over 5 per cent during the morning on Monday after the company announced a new investment of up to ₹420 crore in Ather Energy.
At 10:24 am on Monday, Hero MotoCorp was trading at ₹2,708.10 on the BSE, up ₹137.55 or 5.35 per cent. It had opened at ₹2,596 as against the previous close of ₹2,570.55. It recorded an intraday high of ₹2,721.45 and a low of ₹2,590.80.
On the NSE, it was trading at ₹2,708.10, up ₹138.40 or 5.39 per cent.
Nifty Auto Index was up nearly 2 per cent led by Hero MotoCorp
Stake hike
The company’s board has approved the investment in Ather in one or more tranches. Prior to the proposed investment, Hero MotoCorp’s shareholding in Ather Energy was 34.8 per cent (on a fully diluted basis) which will now increase post the investment. The exact shareholding will be determined upon completion of the capital raise round by Ather.
Ather is engaged in the business of designing, manufacturing, producing, selling, servicing, software development, and software management, in relation to electric automobiles and charging infrastructure; and storage, distribution, and management systems, or otherwise all forms of electric power (including energy in the form of batteries) and other ancillary services.
Hero MotoCorp has been an early investor in Ather Energy since 2016.
Swadesh Srivastava, Head – Emerging Mobility Business Unit, Hero MotoCorp said, “In keeping with our vision ‘Be the Future of Mobility’, we are working on a variety of emerging mobility solutions. We were one of the early investors in Ather Energy and have continued to expand our association over the years.”
“Our aim is to expand the Hero MotoCorp brand promise and make EV ownership a convenient, hassle-free, and rewarding experience for customers across the world,” Srivastava said.
The two-wheeler manufacturer is also exploring collaborations with Ather Energy in various spheres, such as charging infrastructure, technology and sourcing.
It is also gearing up to unveil its first electric vehicle (EV) in March this year.
Separately, the company on Friday also announced that it has expanded its operations and commenced retail sales at a newly opened flagship store in the country’s capital city San Salvador.