Hero MotoCorp Ltd to make further investment in Ather Energy Pvt Ltd

The Board of Directors of Hero MotoCorp Ltd, in its meeting held on 23rd July 2020, had approved an investment of up to INR 83,99,74,176 (Rupees Eighty Three Crores Ninety Nine Lakhs Seventy Four Thousand One Hundred and Seventy Six), in one or more tranches, in Ather Energy Private Limited through Compulsorily Convertible Preference Shares. Post this investment, the shareholding of Hero MotoCorp Ltd in Ather Energy Private Limited will increase from 35.10% (31.27% on a fully diluted basis) to 38.57% (34.58% on a fully diluted basis).

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

Ather, an existing Associate company of Hero MotoCorp Limited (HMCL), is engaged in the business of (a) designing, manufacturing, producing, selling, servicing, software development, and software management, in relation to electric automobiles and charging infrastructure; and (b) storage, distribution, and management systems, or otherwise all forms of electric power (including energy in the form of batteries) and other ancillary services.

Turnover for the year ended March 2020 was Rs. 353 million.

As the market leader and a global automotive major, Hero MotoCorp takes the lead in many areas that benefit the environment, customer and the industry. Adoption of environment friendly fuel is a priority for Hero MotoCorp, as is propagating sustainable manufacturing through green facilities. HMCL intends to enhance its participation in the EV space by partnering with Ather in addition to pursuing its internal EV program.

Shares of HERO MOTOCORP LTD. was last trading in BSE at Rs.2741 as compared to the previous close of Rs. 2775.5. The total number of shares traded during the day was 28621 in over 3141 trades.

The stock hit an intraday high of Rs. 2793 and intraday low of 2728.4. The net turnover during the day was Rs. 78871950.

Source : Equity Bulls

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