Hero MotoCorp set to invest Rs 550 crore in Ather Energy – EQ
The board of the company on Monday approved an investment of up to ₹550 crore in the rights issue of Ather Energy.
Hero MotoCorp plans to invest an additional ₹550 crore in Ather Energy, the company said in an exchange filing. The board of the company, in a meeting held on September 4, has approved an investment of up to ₹550 crore in the rights issue of Ather Energy.
Before the proposed investment, Hero MotoCorp’s shareholding in Ather stood at 33.1%.The investment is subject to the execution of definitive documents and completion of certain conditions customary to a transaction of this nature, according to a media report by the Mint.
The funding has come at a time when the EV maker is planning to launch an IPO, probably by 2024.
Last year in October, Ather Energy raised $50 million in equity funding led by its existing investor Caladium Investment Pte Ltd with participation from Navam Capital-backed Herald Square Ventures.
The Bengaluru-based startup last month had launched an entry-level electric scooter model 450S in the country priced at ₹1.29 lakh (ex-showroom Delhi).
The 450S comes with a battery capacity of 2.9 kWh, a range of 115 kilometres, and a top speed of 90 km/hour, Ather Energy said in a statement. It is looking to double its market share to about 30-40% in the next few years with the launch of its 450S scooter in the 125cc category.
The existing model, 450X, now comes with the option to choose between 115-km and 145-km range variants priced at ₹1.37 lakh and ₹1.44 lakh, respectively.
Recently, Ather Energy partnered with Bharat Petroleum Corporation Limited (BPCL) to expand its charging network. Through the collaboration, Ather will gain access to BPCL’s network of over 21,000 fuel stations across the country, facilitating the installation of Ather’s public fast-charging grid.
Ather already has more than 1,400 chargers across 100 cities. Ather Energy sold around 6,835 units in August this year, up 2% from July’s 6,671 units.
