Hero MotoCorp to buy additional Ather Energy shares by Jan 31, 2024, for INR 140 crore in cash

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Hero MotoCorp Limited (HMCL) has disclosed its intent to purchase additional shares of Ather Energy Private Limited, an existing Associate company of HMCL, in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The acquisition involves additional shares of an Associate Company, a related party transaction, is set to be conducted at “arm’s length,” with no involvement from promoter group companies. This move aligns with Hero MotoCorp’s current business activities, and no government or regulatory approval are required. The acquisition, targeted for completion by January 31, 2024, involves a cash consideration of up to INR 140 crore. Investment is being made in the form of purchase of additional shares from an existing shareholder of Ather. Post-acquisition, Hero MotoCorp’s shareholding in Ather is expected to increase from 36.7% to 39.7%.

Ather Energy Private Limited, incorporated in 2013, engaged in designing, manufacturing, and servicing electric two-wheelers, and managing electric power services (including energy in the form of batteries), reported a turnover of Rs. 1806.1 crore in the fiscal year ending March 2023. This disclosure provides a transparent overview of the acquisition, showcasing strategic expansion within the electric vehicle sector.

Also read: Hero MotoCorp to invest additional INR 550 crores in Arther Energy