Hero MotoCorp bets another ₹1,758 crore on Ather, lifting stake to 32.8%
What's the deal? Hero MotoCorpDealroom has a profile for this one. Try Dealroom → will invest up to ₹1,758 crore to raise its stake in Ather Energy from 29.88% to about 32.8% on a fully diluted basis. Its committee of directors approved the deal on August 27, and the cash purchase — buying shares from an undisclosed existing shareholder — is expected to close by September 3.
Why now? India's electric two-wheeler market is developing rapidly, with traditional manufacturers and newer EV players competing across commuter, premium, and family scooter segments. Hero, already Ather's largest shareholder, is deepening exposure rather than entering the market from scratch.
What's the endgame? Ather designs, makes, sells, and services electric two-wheelers, and runs its own charging infrastructure plus battery-related energy management. The larger stake gives Hero a bigger interest in that ecosystem without building a separate EV business around the Ather brand.
By the numbers: Ather reported ₹3,671.76 crore in turnover for FY26, up from ₹2,255 crore in FY25 and ₹1,753.8 crore in FY24 — more than doubling over two years. In the June quarter, it posted a sharply narrower loss, helped by demand for its Rizta family scooter.
Market response: Ather shares rose more than 5% in early trading on August 28 after a block deal covering nearly 3% of its equity. About 1.19 crore shares changed hands at ₹1,480 each — roughly ₹1,758 crore, and around 1% below the previous close.
Context: The purchase follows a separate preferential issue, under which Ather allotted Hero 76.19 lakh convertible warrants worth ₹960 crore at ₹1,260 each, with 25% payable upfront.
What could go wrong? Ather remains exposed to industry-wide pressures, including competition, battery costs, pricing pressure, and the need to build scale. A rising share price also raises the bar on future growth expectations.
The signal: Hero's back-to-back investments signal that India's legacy two-wheeler makers see equity stakes in EV specialists as a faster route to electric market share than building brands of their own.
Read more: equentis.com
Image credit: smaedli
