Hero MotoCorp's stake in electric two-wheeler maker, Ather Energy is likely to go up by 1-3 % as a result of the company's further investment in the EV maker, reported CNBC TV 18.
On January 14, Hero Moto Corp had announced an investment of up to Rs 420 crore in Ather Energy. The two-wheeler major's board had approved the investment in one or more tranches.
Prior to the proposed investment, Hero MotoCorp's shareholding in Ather Energy was 34.8% (on a fully diluted basis).
Post the investment, Hero's shareholding is likely to increase by 1-3%, sources have told CNBC TV 18. Although the final stake will only be known after Ather's Series E Funding round where it's looking to raise approximately Rs 1,000 crore. The funds will be utilized to expand Ather's pan India sales footprint.
According to CNBC TV18, Hero is not looking at a controlling stake in Ather Energy. However, the company is yet to revert CNBC TV 18's queries.
Nonetheless, the news of the investment did good for Hero's share price, as it surged 5% early trade, on January 17.
As Hero MotoCorp, gears up to launch its first EV in March, this additional investment in Ather is a part of its three-pronged EV strategy. It is also considering to retail Ather's scooters in its outlets, along with looking at other collaborations to expand its domestic EV footprint. The company has also partnered with With Taiwan's Gogoro on battery swapping & EV scooters.
Hero's investment in Ather also came on the same day, as Ather had announced its price hike for its electric scooters. On January 14, Ather Energy had hiked the prices of its electric scooters by about Rs 5,500 in the country.
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