Shares of Ather Energy surged over 9% to an all-time high of ₹1,313.65 on the BSE after Hero MotoCorp approved an additional investment of up to ₹1,000 crore (about $103 million) in the electric two-wheeler maker. The stock later trimmed gains and was trading 7.2% higher at ₹1,290.50, with Ather's market capitalization reaching ₹49,602.2 crore (about $5.1 billion), according to inc42.com.
Hero MotoCorp's committee of directors approved the fresh investment through a preferential allotment of equity shares or other equity-linked securities in Ather Energy. The company currently holds a 29.48% stake in Ather as of June 30, 2026. The exact shareholding post-investment will depend on the pricing of the preferential issue and any further securities issuance by Ather. The board of Ather Energy was scheduled to meet to consider raising funds via equity shares or foreign currency convertible bonds, inc42.com reported.
This capital infusion comes amid intensifying competition in India's electric two-wheeler market, where Ather Energy is a key player. The fresh funds will help Ather strengthen its financial position to compete with other electric vehicle manufacturers. Hero MotoCorp's investment underscores its commitment to expanding its presence in the electric mobility segment, which is seeing rapid growth and increased investor interest in India.
Ather Energy's board meeting to consider the fundraising options was set for today, marking a critical step in the company's efforts to bolster its capital base. Hero MotoCorp's ₹1,000 crore investment represents a significant capital boost for Ather as it navigates a competitive market landscape, according to inc42.com.