Hero MotoCorp Limited to invest Rs. 550 crore in rights issue of Ather Energy Pvt Ltd

The Board of Directors of Hero MotoCorp Limited (HMCL) at its meeting held on September 4, 2023 has approved an investment of up to INR 550 crore (Rupees five hundred fifty crore), in the Rights issue of Ather Energy Private Limited. The investment is subject to the 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 designing, manufacturing, selling, servicing electric two wheelers. Besides, Ather also has its own charging infrastructure and is engaged in storage, distribution and management of electric power (including energy in the form of batteries) and other ancillary services. Turnover for the year ended March 2023 was Rs. 1806.1 crore.

Prior to the proposed investment, HMCL's shareholding in Ather is 33.1% (on a fully diluted basis) of the paid-up share capital of Ather.

Post the investment/subscription, HMCL's shareholding in Ather shall increase. The exact shareholding will be determined upon completion of capital raise round by Ather.

Shares of Hero MotoCorp Limited was last trading in BSE at Rs. 2943.05 as compared to the previous close of Rs. 2927.05. The total number of shares traded during the day was 10895 in over 1031 trades.

The stock hit an intraday high of Rs. 2965.15 and intraday low of 2922.10. The net turnover during the day was Rs. 32008426.00.

Source : Equity Bulls

Keywords

HeroMotoCorp INE158A01026 Investment RightsIssue AtherEnergy