Hero MotoCorp has announced a fresh investment of ₹960 crore in electric two-wheeler manufacturer Ather Energy through a preferential warrant issue, reinforcing its long-term commitment to India’s fast-growing electric mobility sector. Once the warrants are fully converted into equity shares, Hero MotoCorp’s stake in Ather Energy is expected to increase from 29.48% to 30.68% on a fully diluted basis.
The investment will be made through the subscription of 76.19 lakh convertible warrants, each priced at ₹1,260. As per the terms of the issue, Hero MotoCorp will pay 25% of the subscription amount upfront, while the remaining amount will be payable at the time of warrant conversion within the prescribed timeline. The transaction remains subject to shareholder and regulatory approvals.
The latest funding forms part of Ather Energy’s broader capital-raising initiative aimed at accelerating business growth and strengthening its financial position. The company is looking to use the additional capital to expand manufacturing capabilities, enhance research and development, improve charging infrastructure, and support new product launches as competition intensifies in India’s electric two-wheeler market.
Hero MotoCorp has been one of Ather Energy’s earliest strategic investors, and this additional investment highlights its continued confidence in the EV manufacturer’s long-term growth prospects. The move also reflects Hero’s strategy to strengthen its presence in the electric mobility segment while supporting innovation in sustainable transportation solutions.
Alongside Hero MotoCorp’s participation, Ather Energy is also raising capital from other investors through its preferential fundraising plan. The combined fundraise is expected to provide the company with greater financial flexibility as it scales operations, expands its product portfolio, and increases its market reach across India’s rapidly evolving EV ecosystem.
With electric vehicle adoption gaining momentum across the country, Hero MotoCorp’s increased investment further strengthens its strategic partnership with Ather Energy. The deal underlines growing investor confidence in India’s EV industry and positions both companies to capitalize on rising demand for premium electric two-wheelers and future mobility technologies.
