Hero Motocorp slated to invest additional Rs 1,000 crore in Ather Energy

Hero MotoCorp has approved an additional investment of up to Rs 1,000 crore in Ather Energy, further strengthening its backing of the Bengaluru-based electric scooter maker ahead of a crucial product offensive. 

1. Hero approves additional investment of up to Rs 1,000 crore in Ather
2. Hero remains Ather’s largest shareholder with a 29.48 percent stake
3. Investment comes ahead of Ather’s next phase of product expansion

Hero’s additional investment in Ather: What to expect?

The investment comes at a significant time for Ather, which recently confirmed that it will unveil the mass-market EL platform scooter

The investment will be made through a preferential allotment of equity shares or equity-linked convertible securities, subject to regulatory and shareholder approvals.

Hero has been an investor in Ather since 2016 and currently holds a 29.48 percent stake in the company on a fully diluted basis, making it Ather’s largest shareholder. The latest capital infusion is expected to be completed within 15 days of receiving the required regulatory and corporate approvals.

The investment comes at a significant time for Ather, which recently confirmed that it will unveil its first mass-market EL platform scooter at Community Day on August 29. Expected to be priced in the Rs 1 lakh-1.25 lakh range, the new scooter will be Ather’s first all-new platform since the 450 and is aimed at significantly expanding the company’s addressable market.  

The additional funding also follows Ather’s recent partnership with LICO Materials to establish a collection and recycling ecosystem for end-of-life lithium-ion batteries. Under the partnership, batteries from Ather’s EV fleet will be processed at LICO’s recycling facility in Karnataka, where they will either be repurposed for second-life applications or recycled to recover critical materials that can be fed back into the battery supply chain. The initiative supports compliance with India’s Battery Waste Management Rules while helping reduce dependence on imported battery materials.