Ather Energy shares are likely to remain in focus after Hero MotoCorp announced a fresh investment of Rs 1,000 crore in the electric two-wheeler maker through a preferential allotment. The investment boosts the Hero’s long-term commitment to Ather, where it is already the largest shareholder. While Hero MotoCorp shares ended lower on Tuesday, Ather Energy stock gained 1.72 per cent, reflecting positive market sentiment around the announcement.
The company’s board has approved the subscription to equity shares or other eligible securities to be issued by Ather on a preferential basis. This investment is subject to necessary approvals, including those from Ather’s board and shareholders.
Hero to remain Ather’s largest shareholder
Hero MotoCorp stated that the deal would be an all-cash transaction and is expected to be completed within 15 days of Ather receiving all necessary approvals. The company also noted that, although Ather is a ‘related party’ by virtue of being an associate company, this investment would be made on an ‘arm’s-length basis’.
What it means for Hero MotoCorp shares
Despite the announcement, Hero MotoCorp shares ended Tuesday’s session 1.39 per cent lower at Rs 4,884.60.
The stock has declined 2.75 per cent over the past month, indicating that investors remained cautious despite the company’s renewed commitment to the EV space.
Ather Energy shares closed 1.72 per cent higher at Rs 1,202.95 on Tuesday.
The stock has gained 17.09 per cent over the past month, reflecting improving investor sentiment towards the EV maker.
Ather Energy to unveil mass-market electric scooter in August
Two-wheeler maker Ather Energy on Tuesday said it will unveil its first mass-market electric scooter, built on the next-generation vehicle architecture, at its flagship event Community Day in Bangalore on August 29.
Alongside the new scooter, Ather said it will also introduce a range of innovations across technology, charging, and the ecosystem that will make the ownership experience more seamless and connected.
The scooter is built on the next-generation vehicle architecture which is the company’s first all-new vehicle platform EL, since the launch of the 450 platform in 2016.
Hero MotoCorp shares closed at Rs 4,884.60 on Tuesday, down 1.39 per cent. The company’s stock is down 2.75 per cent over the past month.
Ather Energy’s shares closed at Rs 1,202.95 on Tuesday, up 1.72 per cent. The company’s stock has seen a rise of 17.09 per cent over the past month.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
