Hero MotoCorp and Ather Energy Deal Explained
Ather Energy shares surged nearly 10% to a new 52-week high after Hero MotoCorp approved an additional investment of up to ₹1,000 crore through a preferential allotment, reinforcing its long-term EV strategy.
Ather Energy shares hit a fresh 52-week high after Hero MotoCorp approved an additional investment of up to ₹1,000 crore through a preferential allotment. The announcement strengthened investor sentiment, extending the EV stock's strong rally supported by robust business growth and rising electric vehicle adoption.
Ather Energy share price surged more than 9% on Wednesday to hit a fresh 52-week high after Hero MotoCorp approved an additional investment of up to ₹1,000 crore in the electric two-wheeler manufacturer.
The stock climbed 9.7% to ₹1,318.9 a piece on BSE, extending its strong rally over the past few months. Investor sentiment strengthened after Hero MotoCorp announced that its Committee of Directors had approved the fresh investment proposal at its meeting held on July 14.
Hero MotoCorp to invest through preferential allotment
According to Hero MotoCorp's regulatory filing, the investment will be made by subscribing to equity shares or other eligible securities, including compulsorily convertible preference shares (CCPS), warrants or other convertible instruments, to be issued by Ather Energy through a preferential allotment.
The transaction remains subject to the necessary approvals from Ather Energy's Board of Directors and shareholders.
Hero MotoCorp currently owns a 29.48% stake in Ather Energy as of June 30, 2026, making it the EV company's largest shareholder. The company said its post-investment shareholding will depend on the pricing, structure of the preferential issue and any further securities issued by Ather.
The transaction is expected to be completed within 15 days of receiving the final approvals.
Investment supports Hero's EV strategy
Ather Energy has been an associate company of Hero MotoCorp and operates in the business of designing, manufacturing, selling and servicing electric two-wheelers. The Bengaluru-based company also operates its own EV charging network and is involved in charging infrastructure and related energy solutions.
The fresh capital infusion comes as competition in India's electric two-wheeler market continues to intensify. While Ather was among the earliest entrants in the segment, it faces stiff competition from larger rivals such as TVS Motor and Bajaj Auto, both of which benefit from wider distribution networks and stronger financial resources.
The additional investment underscores Hero MotoCorp's continued commitment to strengthening its presence in the fast-growing electric mobility segment through its strategic partnership with Ather Energy.
Ather reports strong revenue growth
Ather Energy has also reported strong business growth over the past year.
For the financial year ended March 31, 2026, the company reported a turnover of ₹3,671.76 crore, compared with ₹2,255 crore in the previous financial year, reflecting strong growth in sales as EV adoption continues to increase in India.
Ather Energy share price performance
The stock has gained around 25% over the past month and risen 48% in the last 3 months. Over the past 6 months, Ather Energy shares have surged 100%, doubling investors' money.
As of 15 July, 1: 44 PM
On a one-year basis ( July 2025- July 2026) , the EV stock has rallied approximately 276%, making it one of the strongest-performing stocks in the electric mobility space. Wednesday's rally also pushed the stock to a new 52-week high of ₹1,318.90, reflecting investor optimism over Hero MotoCorp's fresh investment and Ather's long-term growth prospects.