Hero MotoCorp to invest Rs 1,758 crore more in Ather

Hero MotoCorp will invest up to Rs 1,758 crore to increase its stake in Ather Energy, taking its holding in the electric two-wheeler maker from 29.88 percent to approximately 32.8 percent on a fully diluted basis.

1. Hero MotoCorp will buy existing Ather shares worth up to Rs 1,758 crore
2. Its stake will rise from 29.88 percent to approximately 32.8 percent
3. The deal comes shortly after Hero’s separate Rs 1,000 crore investment in Ather

The investment was approved by Hero MotoCorp’s Committee of Directors on August 27 and will involve the purchase of existing Ather shares from an existing shareholder. This makes it a secondary transaction rather than a fresh equity issue by Ather. The deal will be funded entirely through cash and is expected to be completed by September 3, 2026. No government or regulatory approvals are required.

The latest investment comes shortly after Hero announced plans to invest up to Rs 1,000 crore in Ather through a preferential issue. Ather subsequently allotted Hero convertible warrants worth Rs 959.99 crore as part of that investment.

The two transactions are separate, with the earlier investment involving securities issued by Ather and the latest Rs 1,758 crore deal involving the purchase of existing shares. Taken together, Hero has committed up to around Rs 2,758 crore to Ather through the two transactions.

Hero has been an investor in Ather for several years and is already its largest shareholder. The latest investment will further strengthen its position in the company, which continues to expand its electric two-wheeler business and charging network across India.

Ather’s turnover has grown significantly over the past three financial years, rising from Rs 1,753.8 crore in FY2024 to Rs 2,255 crore in FY2025 and Rs 3,671.76 crore in FY2026.

The company designs, manufactures and sells electric two-wheelers and operates its own charging network with an open-source connector that’s shared with Vida. Ather’s portfolio includes the 450 range and Rizta, while its presence has expanded across the country. As for the brand’s immediate plans, Ather is slated to launch its first model based on the EL platform tomorrow, at its community day, intended to slot in below the Rizta.

With inputs from Angitha Suresh