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Hero MotoCorp Plans to Outlay INR 550 Crore in Ather Energy

Hero Motorcorp first invested in the EV startup in 2016 and presently owns a 33.1 percent stake in it. Its shareholding will further rise following the rights issue, which is anticipated to close the transaction by end of the September.

September 05, 2023. By EI News Network

Hero MotoCorp said it would outlay up to INR 550 Cr in Ather through its rights issue by subscribing to the EV startup’s Series E2 mandatory convertible preference shares.

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

The funding has come at a time when the EV maker is planning to introduce an IPO, probably by 2024.

Last year in October, Ather Energy raised USD 50 million in equity funding led by its existing investor Caladium Investment Pte Ltd with the partake from Navam Capital-backed Herald Square Ventures.

Ather Energy added, the 450S comes with a battery capacity of 2.9 kWh, a range of 115 kilometres, and a top speed of 90 km/hour. It is looking to double its market share to about 30-40 percent in the subsequent few years with the commencement of its 450S scooter in the 125cc category.

Hero Motorcorp first invested in the EV startup in 2016 and presently owns a 33.1 percent stake in it. Its shareholding will further rise following the rights issue, which is anticipated to close the transaction by end of the September.

Ather Energy was founded in 2013 by Tarun Mehta and Swapnil Jain. The company presently offers two escooters – Ather 450X and Ather 450S.

It has more than 1,400 charging points in over 99 cities, comprising Delhi, Chennai, Bengaluru, Mumbai, Hyderabad, Jaipur.

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Convertible preference shares

EV manufacturers

Initial public offering

EV Charging Points

Investing

Shareholding