Indian two-wheeler maker Hero MotoCorp on Tuesday approved an investment of up to 10 billion rupees ($103.95 million) in homegrown EV maker Ather Energy.
Hero, the Bengaluru-based EV maker’s biggest shareholder, said its post-transaction stake will depend on the pricing and structure of the proposed securities issue. The company held a stake of 29.48% in Ather Energy, as of June 30.
Hero plans to invest in the EV maker through a preferential allotment of shares or convertible securities. The transaction is targeted to be complete within 15 days of the final approval.
Although an early entrant in India’s EV two-wheeler market, Ather faced intense competition from larger rivals such as TVS Motor and Bajaj Auto, which benefitted from stronger financial resources and wider distribution networks.
Reuters
