Hero MotoCorp Backs Ather Energy With ₹1,000 Crore Investment; Shares Rise

Hero MotoCorp has approved an additional investment of up to ₹1,000 crore in electric two-wheeler maker Ather Energy through a preferential allotment of equity shares and other eligible securities.

The decision was taken by Hero MotoCorp's Committee of Directors at a meeting held on 14 July 2026.

Ather Energy’s stock price closed at ₹1,299.00 on the NSE on 15 July 2026, up 8.00% from its previous closing price. The stock touched an intra-day high of ₹1,318.90, taking its market capitalisation to around ₹47,725 crore. However, Hero MotoCorp shares fell 0.05% and closed at ₹4,876.20.

A Deepening Relationship

Hero MotoCorp first invested ₹205 crore in Ather Energy in 2016 during its Series B funding round. It later joined multiple funding rounds and rights issues, taking its total investment to around ₹1,700 crore by mid-2024.

As of 30 June 2026, Hero MotoCorp held a 29.48% stake in Ather Energy on a fully diluted basis, making it the largest shareholder.

The fresh ₹1,000 crore will be deployed entirely in cash and is expected to be completed within 15 days of Ather receiving the last of the required regulatory and shareholder approvals.

Although Ather Energy is a related party as an associate company, Hero MotoCorp has stated the investment will be made on an arm's-length basis. The final shareholding post-investment will depend on the pricing of the preferential allotment and any additional securities subsequently issued by Ather's board.

Ather Also Eyes Broader Fundraise

The Hero MotoCorp investment comes alongside a separate fundraising plan being considered by Ather Energy's own board. The company is looking at raising up to ₹2,500 crore through a combination of a qualified institutional placement of up to ₹1,500 crore and up to ₹1,000 crore through equity shares, foreign currency convertible bonds or other eligible instruments. The fundraise is subject to regulatory and shareholder approvals.

The additional capital is expected to support capacity expansion, product development and network growth at a time when Ather Energy's existing manufacturing capacity is operating close to full utilisation.

Ather Energy designs, manufactures and sells electric two-wheelers and also operates charging infrastructure and battery energy management services. The company reported a turnover of ₹3,671.76 crore for the financial year ended March 2026.

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