Ather Energy Rallies 5% As ₹1,758-Crore Block Deal Signals Hero MotoCorp Stake Hike
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Ather Energy shares gained over 5% in early trade after nearly 3% of the electric two-wheeler maker changed hands in a ₹1,758-crore block deal. The transaction comes after Hero MotoCorp announced plans to acquire additional Ather shares.
Shares of Ather Energy rose over 5% in early trade on 28 August after nearly 3% of the electric two-wheeler maker's equity changed hands in a block deal worth ₹1,758 crore. The transaction came a day after Hero MotoCorp said it would buy additional shares in Ather from an existing investor.
Around 1.19 crore Ather Energy shares were exchanged at ₹1,480 apiece. The block deal price was about 1.02% lower than Ather's previous closing price.
At 10:40 AM on Friday, Ather Energy shares were trading at ₹1,603.41, up 7.23%.
Key Details & Market Reaction
The transaction appears to be linked to Hero MotoCorp's proposed investment announced on 27 August. The automaker said it would spend up to ₹1,758 crore to purchase additional Ather shares through a cash transaction, although it did not identify the selling shareholder.
Once the acquisition is completed, Hero MotoCorp's fully diluted stake in Ather is expected to rise to around 32.8%, from 29.88% as of 25 August. The transaction is likely to close by 3 September.
Ather Energy shares climbed to around ₹1,577 during the early session, marking a gain of nearly 5.5% from the previous close. The stock has had a strong run in 2026, more than doubling so far this year with a gain of around 108%. By comparison, the Nifty 50 has declined 7.9% over the same period. At the day's market price, Ather's market capitalisation stood above ₹62,000 crore.
Hero MotoCorp was already Ather's biggest shareholder before the latest proposed acquisition. The move also follows a separate transaction earlier this month, under which Ather allotted convertible warrants worth ₹960 crore to Hero MotoCorp through a preferential issue.
Ather Energy's Financial Performance
Ather has reported a significant improvement in its financial performance in recent quarters. The company posted a sharply lower loss in the June quarter, helped by stronger demand for its family-focused Rizta electric scooter.
For FY26, Ather reported a turnover of ₹3,671.76 crore, compared with ₹2,255 crore in FY25 and ₹1,753.8 crore in FY24.
The company designs, manufactures and sells electric two-wheelers and also provides servicing and charging infrastructure. Ather operates its own charging network and is classified as an associate company of Hero MotoCorp.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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