Hero MotoCorp will acquire additional Ather shares worth up to ₹1,758 crore, taking its holding from 29.88% to 32.8%.
The investment comes days after Ather allotted ₹960 crore worth of convertible warrants to Hero in a separate preferential issue.
Ather’s shares have surged around 260% over the past year, while the company reported a narrower first-quarter loss on strong demand for its Rizta electric scooter.
Ather Surge: Hero MotoCorp Moves To Raise Stake As EV Stock Soars 260%
Hero MotoCorp is deepening its bet on electric mobility with a ₹1,758 crore share purchase that will lift its stake in Ather Energy to 32.8%, as competition intensifies in India’s electric two-wheeler market
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Hero MotoCorp will increase its stake in electric scooter maker Ather Energy to 32.8% by acquiring additional shares worth up to ₹1,758 crore from an existing shareholder, the company said on Thursday.
The Bengaluru-based motorcycle manufacturer, which is already Ather's largest shareholder, held a 29.88% stake as of August 25. Hero did not disclose the identity of the shareholder from whom it will purchase the additional shares.
The transaction comes days after Ather allotted convertible warrants worth ₹960 crore to Hero MotoCorp as part of a separate preferential issue. Once both transactions are completed, Hero's holding in Ather will rise to 32.8%.
Hero deepens Ather bet
Ather, headquartered in Bengaluru, designs, manufactures and sells electric two-wheelers and also operates its own charging network. Its business includes battery-related energy storage, distribution and management, along with other ancillary services.
The company reported turnover of ₹3,671.76 crore in the financial year ended March 2026, up from ₹2,255 crore in FY25 and ₹1,753.8 crore previously.
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Ather has also been gaining traction in India's rapidly expanding electric two-wheeler market. The company reported a significantly narrower loss in the first quarter, supported by strong demand for its family-oriented Rizta electric scooter.
The move by Hero comes as competition intensifies in India's electric two-wheeler segment, with established automakers and newer EV manufacturers competing aggressively for market share.
Ather shares surge
Ather's stock has gained around 260% over the past year, taking its market capitalisation to approximately ₹58,933 crore. The shares touched a fresh 52-week high of ₹1,580 during Friday's trading session.
On the technical front, Ather's 14-day Relative Strength Index (RSI) stood at 63.6. While an RSI above 70 is generally considered to indicate an overbought zone, the current reading remains below that threshold.
The stock is also trading above all eight of its key Simple Moving Averages (SMAs), pointing to sustained upward momentum, according to the technical indicators cited.
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