Hero MotoCorp Ltd.'s board has approved an investment of Rs 550 crore in electric two-wheeler maker Ather Energy Pvt.'s rights issue.
The Splendor-maker, which currently holds 33.1% of Ather, will see its shareholding rise in the company. The transaction is expected to be completed before the end of September.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
The exact increase in Hero MotoCorp's shareholding in Ather will be known after the rights issue concludes.
Ather currently sells the 450X and 450S in the Indian market. It recorded sales of 6,620 units in July, with a market share of 0.5% in the overall two-wheeler market, data from the Federation of Automobile Dealers Associations showed.
It had a turnover of Rs 1,806 crore in fiscal 2023, up manifold from Rs 414 crore in FY22.
The fundraise comes at a juncture when the electric two-wheeler industry is going through a rough patch after the FAME-II subsidies were reduced, limiting the sector's growth.
Several scooter-makers have also underlined existential challenges after the government withheld disbursal of subsidies, accusing the manufacturers of flouting norms with regards to using locally manufactured parts in their vehicles.
Well-funded competitors—such as Ola—have gone ahead to capture the lion's share of the market, along with the launch of several new models.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.