Hero MotoCorp on Monday said that the company’s Board of Directors has approved an investment of up to ₹550 crore in the rights issue of Ather Energy.
The investment is subject to the execution of definitive documents and completion of certain conditions customary to a transaction, the company said in filing to stock exchanges.
Ather, an existing associate company of Hero MotoCorp, is engaged in designing, manufacturing, selling, and servicing electric two-wheelers. Besides, Ather also has its charging infrastructure and is engaged in storing, distributing, and managing electric power (including energy in the form of batteries) and other ancillary services.
Turnover for the year ended March 2023 was Rs.1,806.1 crore.
“This is not an acquisition, but subscriptio nby Hero MotoCorp Ltd, in the rights issue of Ather. The company is an existing shareholder of Ather. No government or regulatory approval is required,” the company said.
The period for completion of the acquisition is expected by September 30.