Hero MotoCorp share price gained 5 percent in the early trade on January 17 after the company announced a investment of up to Rs 420 crore in Ather Energy.
The Hero MotoCorp board has approved the investment in one or more tranches in Ather Energy, company said in its release.
Prior to the proposed investment, Hero MotoCorp’s shareholding in Ather Energy was 34.8 percent (on a fully diluted basis). The investment will jack up the shareholding, though the exact share of the pie will be determined upon completion of Ather's capital-raising, it said.
Hero Motocorp is also exploring collaborations with Ather Energy in various spheres such as charging infrastructure, technology and sourcing.
“In keeping with our vision to '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," said Swadesh Srivastava, Head of Emerging Mobility Business Unit at Hero MotoCorp.
"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,” he said.
Through its investments and tie-ups with external partners like Ather Energy and Gogoro Inc, Hero MotoCorp is also working to build the entire EV ecosystem – from products to technology, to sales, services, customer care, operations, and innovation, the company said.