Hero MotoCorp, the World’s largest manufacturer of motorcycles and scooters, in a press release announced its plant to invest upto ₹ 420 Crore in Bengaluru based electric two-wheeler manufacturer Ather Energy.
Before this proposed investment, Hero MotoCorp’s shareholding in Ather Energy was 34.8% (on a fully diluted basis).
Post the investment, Hero MotoCorp’s shareholding in Ather Energy will increase and the exact shareholding will be determined upon completion of the capital raise round by Ather, according to a press release.
The investment comes in the background of a price hike that Ather Energy has announced for its electric scooters. Earlier in the day, Ather informed an increase of about ₹ 5,500 for its electric scooters, citing rising input costs as the reason.