Hero MotoCorp Limited (HMCL) is planning to acquire additional shares of electric mobility startup Ather Energy Private Limited for Rs 140 crore.
HMCL, which owns 36.7% of Ather’s shares is planning to buy an additional 3% of shares in an all-cash deal according to filings by the company on the Bombay Stock Exchange.
“Currently, HMCL’s shareholding in Ather is 36.7% (on a fully diluted basis) of the paid-up share capital of Ather. Post the purchase of additional shares, HMCL’s shareholding in Ather would increase to 39.7% (on a fully diluted basis) of the paid-up share capital of Ather,” the company said.
Besides manufacturing electric two-wheelers, Ather also has its charging infrastructure and is engaged in the storage, distribution, and management of electric power.
In September, the electric mobility startup raised Rs 900 crore via a rights issue from its existing shareholders—Hero MotoCorp and Singapore’s GIC. Hero MotoCorp had invested Rs 550 crore in Ather Series E2 Compulsory Convertible Preference Shares (CCPS).
Earlier this month, CEO Tarun Mehta announced plans to launch a “bigger, family-oriented” scooter based on “popular demand”. Ather is also planning to release a performance-focused upgrade to its popular 450 series electric scooter early next year.
The electric scooter manufacturer, reported a widened loss of Rs 344.1 crore for the financial year 2021-22, compared to Rs 233.3 crore in the previous year. Despite a significant increase in total income to Rs 413.9 crore from Rs 83.3 crore in FY21, the rise in expenses, particularly in the cost of materials consumed, contributed to the higher overall loss.
Edited by Affirunisa Kankudti
