Hero MotoCorp share jumps nearly 5% on announcing investment in Ather Energy
The company announced an investment in Ather Energy of up to Rs 420 crore
Hero MotoCorp was an early investor in Ather Energy and has been following its progress since 2016
Hero MotoCorp is also preparing to release its first electric vehicle (EV) in March of this year
Hero MotoCorp shares surged nearly 5% to Rs 2695.70 on BSE at 9:45 am after announcing investment in Ather Energy of up to Rs 420 crore.
The company is expanding its e-mobility strategy. As part of its ambition to 'Be the Future of Mobility,' the company has announced an investment in Ather Energy of up to Rs 420 crore. The investment has been authorized by the company's board of directors in one or more tranches.
Hero MotoCorp, which originally invested in the Bengaluru-based EV start-up in Series B funding in October 2016, and then committed Rs 84 crore further in July 2020 to increase its ownership in Ather to 34.58%, has also invested $12 million (Rs 89 crore) in Ather Energy as part of the Series D investment.
Hero's stake will rise as a result of this investment, and the precise shareholding will be established once Ather completes the capital raise round.
“In keeping with our vision 'Be the Future of Mobility', we are working on a variety of emerging mobility solutions. We were one of the early investors in Ather Energy and have continued to expand our association over the years. We are excited to see the growth of Ather Energy in recent years. Our aim is to expand the Hero MotoCorp brand promise and make EV ownership a convenient, hassle-free, and rewarding experience for customers across the world,” said Swadesh Srivastava, head – emerging mobility business unit, Hero MotoCorp.
Hero MotoCorp was an early investor in Ather Energy and has been following its progress since 2016. In addition, the company is investigating cooperation with Ather in areas such as charging infrastructure, technology, and sourcing.
According to the company, it is tackling the burgeoning mobility potential holistically through a variety of organic and inorganic activities.
Hero MotoCorp is also preparing to release its first electric vehicle (EV) in March of this year. The vehicle is being developed at the company's R&D facilities in Jaipur and the Tech Center Germany (TCG) in Munich and will be manufactured at the company's production site in Chittoor, Andhra Pradesh.
Hero MotoCorp is also working to build the full EV ecosystem, from goods to technology, to sales, service, customer care, operations, and innovation, through investments and collaborations with external partners such as Ather Energy and Gogoro Inc.