Hero MotoCorp announced Monday that the company’s board of directors has approved an investment of up to ₹550 crore in Ather Energy’s rights issue.
The investment is subject to the execution of definitive documents and the satisfaction of certain customary transaction conditions, the company said in its filing with the stock exchanges.
Ather, an existing Hero MotoCorp affiliate, is engaged in the design, manufacture, sale and service of electric two-wheelers. In addition, Ather also has its own charging infrastructure and is engaged in the storage, distribution and management of electric power (including energy in the form of batteries) and other ancillary services.
Revenue for the year ended March 2023 was Rs.1,806.1 crore.
“This is not an acquisition but a subscription to Hero MotoCorp Ltd. of Ather’s rights issue. The Company is an existing shareholder of Ather. No regulatory or regulatory approval is required,” the company said.
The timeframe for the completion of the acquisition is expected to be September 30th.
https://www.thehindubusinessline.com/companies/hero-motocorp-approves-550-crore-investment-in-ather-energys-rights-issue/article67271288.ece Hero MotoCorp approves 550 crore investment in Ather Energy’s rights issue