Hero MotoCorp to Increase 2.2% Stake in Ather Energy for Rs. 124 Crore

Key Highlights:

• Hero MotoCorp plans to purchase an additional 2.2% stake in Ather Energy for approximately Rs 124 crore
• Hero MotoCorp's earlier acquisition of a 3% stake in Ather Energy for Rs 140 crore
• Ather Energy recently raised Rs 286 crore through a mix of debt and equity
• Hero MotoCorp reported an 18.29% increase in standalone net profit and a 14.6% rise in revenue in Q4 FY24

Indian two-wheeler maker Hero MotoCorp has announced plans to increase its stake in electric two-wheeler manufacturer Ather Energy. According to a regulatory filing by Hero MotoCorp, the company will purchase an additional 2.2% stake for approximately Rs. 124 crore by buying additional shares from an existing shareholder of Ather Energy. The transaction is expected to be completed by July 31, 2024.

Previous Acquisitions

This move follows Hero MotoCorp's earlier acquisition of an additional 3% stake in Ather Energy for Rs 140 crore, raising its overall shareholding to 39.7%. Hero MotoCorp is a significant investor in Ather Energy, which also includes notable stakeholders like Tiger Global and GIC of Singapore. Following this latest transaction, Hero MotoCorp's total stake in Ather Energy will increase to approximately 41.9%.

Ather Energy's Recent Funding

Recent Fundraising

• Ather Energy raised Rs. 286 crore through debt and equity.
• Stride Ventures invested Rs. 200 crore through non-convertible debentures.
• Co-founders Tarun Sanjay Mehta and Swapnil Babanlal Jain each contributed Rs 43.28 crore via Series F compulsory convertible preference shares.

Financial Performance

• Ather reported a turnover of Rs 1,753.8 crore for the fiscal year ending March 31, 2024, slightly down from Rs 1,784 crore the previous fiscal year.

Company Overview

• Founded in 2013 and based in Bengaluru, Ather Energy is a leading player in India's electric two-wheeler market.
• The company designs, manufactures, and sells electric two-wheelers, including models like Ather 450X, Ather 450 Plus, and Ather 450S.
• Ather has a network of over 1,400 charging stations across 100 cities.

Market Competition

• Ather Energy competes with Bhavish Aggarwal-led Ola Electric.

Hero MotoCorp's Market Presence

Hero MotoCorp is a dominant player in the Indian two-wheeler market, known for manufacturing and selling motorized two-wheelers and related services. In Q4 FY24, the company reported an 18.29% increase in standalone net profit to Rs 1,016.05 crore and a 14.6% rise in revenue to Rs 9,519.30 crore compared to the same period last year.

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