Hero MotoCorp Share Price: Hero MotoCorp’s share price will be in focus during today’s (July 16) trading session after the company announced a Rs 1,000 crore investment in electric two-wheeler maker Ather Energy.
The stock price of the Nifty midcap company settled nearly flat at Rs 4,876.20 in the previous session. (Hero MotoCorp Stock Price)
A preferential allotment refers to the issuance of new shares by a company to selected investors at a predetermined price, usually to raise capital quickly.
The investment, which will be made entirely in cash, is expected to be completed within 15 days after receiving the required approvals.
Hero MotoCorp currently holds a 29.48 per cent stake in Ather Energy, which is expected to increase to 30.68 per cent on a fully diluted basis following the proposed allotment. The increase represents an approximately 4 per cent rise in Hero MotoCorp’s holding in the electric vehicle company.
Ather Energy’s fundraising plan
Hero MotoCorp’s stake purchase is part of Ather Energy’s board-approved plan to raise up to Rs 1,200 crore through a preferential issue comprising equity shares and convertible warrants.
As part of the fundraising exercise, the India-Japan Fund, an existing investor in Ather Energy, will subscribe to 16,26,016 equity shares at Rs 1,230 per share, amounting to around Rs 200 crore. Following the investment, the fund’s stake is expected to increase from 5.75 per cent to 6.02 per cent.
The remaining Rs 1,000 crore will be raised through the issuance of 79,36,507 convertible warrants priced at Rs 1,260 each. Promoters will participate in the issue, including Hero MotoCorp, which will subscribe to 76,19,047 warrants worth around Rs 950 crore.
Ather Energy’s co-founders, Tarun Sanjay Mehta and Swapnil Babanlal Jain, will each subscribe to 1,58,730 warrants, valued at approximately Rs 20 crore each.
| Investor | Pre | Post |
| India-Japan Fund | 5.75% | 6.02% |
| Hero MotoCorp | 29.48% | 30.68% |
| Tarun Sanjay Mehta | 4.93% | 4.85% |
| Swapnil Babanlal Jain | 4.93% | 4.85% |
Ather Energy Shares Price
Meanwhile, Ather Energy’s share price closed nearly 8 per cent higher at Rs 1,296.40 on the NSE in the previous session.
Ather Energy Stock Performance
The company’s stock has delivered strong momentum across various time periods, reflecting rising investor interest and improved market performance. Ather Energy shares have gained 6.62 per cent over the past week, 30.15 per cent in the last one month, 75.90 per cent year-to-date, and 282.23 per cent over the past year.
(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.)
