Hero MotoCorp boosts Ather stake to 39.7% in 2024

What Hero MotoCorp disclosed in its latest filing

Hero MotoCorp has said it will acquire an additional 2.2% stake in electric scooter maker Ather Energy for up to ₹124 crore. The purchase is structured as a secondary transaction, with shares being bought from an existing Ather shareholder. The company disclosed the plan in a regulatory filing, adding that the acquisition is expected to be completed by July 31, 2024. At the time of this filing, Hero MotoCorp said it currently holds a 39.7% stake in Ather. The filing frames the move as another step in Hero’s long-running relationship with the Bengaluru-based EV startup.

Stake position and what changes after the deal

Multiple filings and reports in the public domain show Hero’s stake has moved over time, depending on fundraising rounds and secondary purchases. One disclosure said Hero’s stake would rise to 39.7% from 36.7% after it purchased additional shares worth ₹140 crore. In another version of the same development, the change was described as 39.7% from 36.6%. The latest filing, meanwhile, says Hero already holds 39.7% and is now buying up to a further 2.2%. Hero has not disclosed the identity of the selling shareholder in this secondary transaction.

The implied valuation referenced in reports

Reports around the latest stake increase said the transaction happened at an inferred valuation of ₹5,636 crore. The same set of reports compared this with an earlier valuation of ₹4,666 crore, at which Hero MotoCorp had invested ₹140 crore in December of the preceding year. These valuation references are based on reports tied to the stake purchases and are not described as a fresh primary valuation announcement by Ather. Still, the numbers provide a useful anchor for tracking how the market has been valuing Ather across rounds.

Funding history: rights issue and earlier rounds

Ather raised ₹900 crore in September 2023 from Hero MotoCorp and GIC via a rights issue. A Reuters report also described this as 9 billion rupees (about $108 million) raised from Hero and GIC through a rights issue. Separately, Hero’s board had approved an investment of up to ₹550 crore in that rights issue, described as Series E2 compulsory convertible preference shares. Prior to that, Hero had partially led a $128 million fundraise into Ather in January 2022. Across these events, Hero has remained Ather’s largest investor.

Ather’s recent capital moves and fundraising plans

Ather’s fundraising activity has included a ₹286 crore ($14 million) raise from its founders and Stride Ventures in a mix of debt and equity, as reported. In addition, reports have said Ather is finalising a plan to raise $15 million to $10 million (about ₹750 crore) in primary funding from new and existing investors. This funding round was expected to be led by an existing investor, with a projected valuation range of $150 million to $1 billion, according to an ET report cited in the provided material. Ather had postponed funding plans last year, citing poor market conditions, before completing the ₹900 crore rights issue in September 2023.

How Hero and Ather are collaborating on charging

Beyond equity investments, Hero MotoCorp and Ather have also highlighted operational collaboration. Hero has said it signed an agreement with Ather Energy to create an interoperable fast-charging network for two-wheelers in India. The grid, announced on December 6, was described as covering 100 cities with over 1,900 fast charging points. Separately, Ather has said it operates 1,500 charging stations nationwide, as per the Reuters report. Together, these disclosures point to charging infrastructure as a key part of the broader EV strategy around the partnership.

Ather’s business profile and FY24 revenue

Ather Energy is engaged in designing, manufacturing, producing, selling and servicing electric automobiles and charging infrastructure, according to the filing text included in the provided material. It also undertakes software development and software management related to its products. The company is also involved in storage, distribution and management systems of electric power, including energy in the form of batteries, along with ancillary services. Ather posted revenue of ₹1,753.8 crore in FY24. Another filing cited Ather’s turnover for the year ended March 2023 at ₹1,806.1 crore.

Competitive context: IPO pipeline and EV market activity

Hero’s stepped-up investment comes as the Indian electric two-wheeler space remains active on funding and public market preparations. The provided material notes that Ola Electric, described as the leader in the electric two-wheeler market, was preparing to file a Draft Red Herring Prospectus (DRHP) with SEBI by the next week, as reported by ET on December 12. Separately, a media segment referenced “industry sources” suggesting Ather was gearing up for an IPO process, including work on bankers and independent directors, and targeting revenue of around ₹3,500 to ₹4,000 crore before an IPO. The same segment said Ather was the third-largest player in the electric two-wheeler space and put its market share at 11.7%.

Key numbers at a glance

Operations and network disclosures

Why the stake increase matters for investors

For Hero MotoCorp, the repeated investments and secondary purchases signal an intent to retain meaningful influence in a major EV platform while it prepares its own products for the local EV market, as referenced in one of the filings. For Ather, the ability to attract both primary capital (rights issue and planned fundraising) and secondary liquidity (stake sales) shows continued investor activity despite periods of weak market conditions that led it to defer fundraising plans earlier. The charging collaboration is also a practical linkage between the companies, since charging access and network density are central to EV adoption. These disclosures matter because they connect ownership, capital availability, and infrastructure build-out in a single storyline that investors tend to track closely.

Conclusion

Hero MotoCorp’s planned purchase of up to 2.2% more of Ather for ₹124 crore, with a targeted completion date of July 31, 2024, adds to a series of investments and collaborations between the two companies. The broader backdrop includes Ather’s recent rights issue funding, reports of a fresh primary round under discussion, and heightened activity in the Indian EV sector as other players prepare public-market steps. The next concrete milestone to watch, based on the filing, is the completion of the acquisition by the end-of-July deadline.