Hero MotoCorp’s Committee of Directors approved the transaction at a meeting on August 27. The shares will be purchased for cash from an existing Ather shareholder.
Hero currently owns 29.88% of Ather on a fully diluted basis. Its holding is expected to increase to as much as 32.8% after the transaction, further strengthening its position as Ather’s largest shareholder.
The company did not identify the shareholder selling the stake.
Hero deepens its bet on Ather
Ather designs, manufactures and sells electric two-wheelers and operates an EV charging network. Its businesses also include the storage, distribution and management of electricity, including energy stored in batteries.
The EV maker reported turnover of ₹3,671.76 crore in the year ended March 2026, up nearly 63% from ₹2,255 crore in FY25. Turnover stood at ₹1,753.8 crore in FY24.
Hero said the proposed acquisition isn’t a related-party transaction and that none of its promoters, promoter-group entities or group companies has an interest in Ather.
The purchase doesn’t require government or regulatory approvals and is expected to be completed by September 3.
Comes alongside Ather’s ₹1,200-crore fundraise
The additional stake purchase comes as Hero is separately putting more money into Ather through a preferential issue.
Ather’s board on August 27 approved the allotment of 16.3 lakh equity shares and 79.4 lakh convertible warrants as part of a ₹1,200-crore preferential fundraise.
The India-Japan Fund, represented by the National Investment and Infrastructure Fund, was allotted 16.3 lakh fully paid-up shares at ₹1,230 apiece, representing an investment of about ₹200 crore.
Hero MotoCorp was allotted 76.2 lakh convertible warrants at ₹1,260 each, representing an investment of nearly ₹1,000 crore if the warrants are fully converted.
Hero MotoCorp shares closed 0.8% lower at ₹5,550 on the NSE on Thursday, while Ather Energy ended 0.94% lower at ₹1,480.50.
Also Read: Hero MotoCorp sells 5.33 lakh vehicles in July as domestic dispatches rise 19%
