Hero MotoCorp to invest another ₹1,000 crore in Ather Energy; EV stock gains up to 4%
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Shares of Hero MotoCorp and Ather Energy rose up to 4% in early trade today after Hero's board approved an additional investment of up to ₹1,000 crore in its EV associate through a preferential allotment of securities, subject to requisite approvals.
Cheering the news, shares of Ather Energy jumped as much as 3.86% to ₹1,249.45, taking its market capitalisation to ₹47,833 crore. On Tuesday, the EV stock ended 1.72% higher at ₹1,202.95.
On the other hand, Hero MotoCorp shares rose up to 0.85% to ₹4,926.35, valuing the company at ₹98,541 crore. In the previous session, the country's largest two-wheeler manufacturer ended 1.39% lower at ₹4,884.60.
In an exchange filing on Tuesday, Hero MotoCorp said its Committee of Directors (COD), at a meeting held on July 14, approved the additional investment in electric two-wheeler maker Ather Energy.
"The Committee of Directors (COD) at its meeting held today, i.e. July 14, 2026, has considered and approved the additional investment of up to ₹1,000 crore in Ather Energy Limited, an associate company," the company said in a post-market release on Tuesday.
The investment will be made through the subscription of additional equity shares and other securities of Ather Energy via a preferential allotment.
Hero MotoCorp said its eventual shareholding after the proposed investment will depend on the pricing of the preferential issue, as well as any subsequent issuance of securities that may be approved by Ather's board.
As of June 30, 2026, Hero MotoCorp held a 29.48% stake in Ather Energy on a fully diluted basis.
Hero MotoCorp first invested in the electric two-wheeler maker in 2016, infusing ₹205 crore during Ather's Series B funding round. It has since participated in multiple funding rounds and rights issues, taking its cumulative investment to around ₹1,700 crore by mid-2024.
The fresh capital infusion of up to ₹1,000 crore is expected to support Ather Energy's expansion plans, including scaling up vehicle production, accelerating research and development, and strengthening its fast-charging network.
Ather Energy board to consider ₹2,500 crore fundraising today
The development comes ahead of Ather Energy's board meeting today to consider and approve a proposal to raise up to ₹2,500 crore through a mix of qualified institutional placement (QIP), preferential allotment, rights issue, foreign currency convertible bonds (FCCBs), and other eligible securities.
In a BSE filing dated July 12, the company said its board would consider a proposal to raise funds through the issuance of equity shares, FCCBs, and/or other eligible instruments or securities representing equity shares or convertible into or exchangeable for equity shares.
Of the proposed fundraising, up to ₹1,500 crore will be raised through a QIP of equity shares in one or more tranches. The remaining amount of up to ₹1,000 crore will be mobilised through a mix of equity shares, FCCBs, or other eligible securities that are convertible into or exchangeable for equity shares.
The proposed fundraise is subject to the necessary regulatory and shareholders' approvals, wherever required under applicable law, the company said.
The fundraising plan comes at a time when Ather Energy's existing manufacturing capacity is operating close to full utilisation, with the fresh capital expected to support capacity expansion, product development, and network growth.
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