Hero MotoCorp, the country's largest two-wheeler manufacturer, announced on Friday that its Committee of Directors approved the acquisition of additional equity shares in Ather Energy. The investment is valued at up to ₹1,758 crore and will be funded entirely through cash consideration.
According to a regulatory filing submitted to stock exchanges, the shares will be purchased from an existing shareholder of Ather, rather than through a fresh issue of shares by the company. The transaction does not require any governmental or regulatory approvals and is expected to close by September 3, 2026.
Following the completion of the transaction, Hero MotoCorp’s shareholding in the electric vehicle startup is expected to rise from its current 29.88 percent to around 32.8 percent on a fully diluted basis.
Ather Energy has recorded consistent financial growth over the past three fiscal years. The company's turnover stood at ₹1,753.8 crore for the financial year ended March 31, 2024. This figure grew to ₹2,255 crore in FY25 and climbed further to ₹3,671.76 crore in FY26.
Hero MotoCorp and Ather have maintained an associate relationship, with the traditional two-wheeler manufacturer providing capital support as Ather scaled its operations, expanded its product line-up, and built out its charging network across the country.
"Hero MotoCorp's decision to increase its stake in Ather Energy highlights a strategic, long-term commitment to the electric vehicle sector. By acquiring shares from an existing investor rather than issuing fresh capital, this transaction reflects continued institutional confidence and steady financial growth within Ather. As traditional automotive giants deepen their integration with EV startups through capital and operational support, we are likely to see more consolidation and structured partnerships shaping the future of clean mobility in India." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
