Ather Energy Shares Jump 5% After ₹1,758 Cr Block Deal; Hero MotoCorp to Raise Stake

Ather Energy Block Deal: Shares of Ather Energy jumped more than 5% in early trade on August 28 after a large block transaction involving 1.19 crore shares was executed at ₹1,480 per share. The deal was valued at around ₹1,758 crore, with the transaction price at a 1.02% discount to the stock’s previous close.

The block deal came a day after Hero MotoCorp said it would invest up to ₹1,758 crore to acquire additional Ather Energy shares from an existing shareholder. The identity of the seller was not disclosed.

As of 28 Aug, 10.25 AM

Details of Ather Energy block deal

The transaction involved 1.19 crore Ather Energy shares and was executed through the block deal window. The official buyers and sellers were not immediately known.

Key details of the transaction include:

• Shares traded: 1.19 crore

• Transaction value: Around ₹1,758 crore

• Deal price: ₹1,480 per share

• Discount to previous close: 1.02%

• Equity involved: Around 3% according to one source, while another reported 3.9%

The transaction follows Hero MotoCorp’s announcement that it would purchase additional shares from an existing shareholder through a cash transaction.

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Hero MotoCorp to raise Ather Energy stake to 32.8%

Hero MotoCorp is already Ather Energy’s largest shareholder, with its holding at 29.88%. The latest investment is expected to increase its fully diluted shareholding to about 32.8%.

The transaction is expected to be completed by September 3.

The latest investment follows another recent transaction involving Hero MotoCorp. Earlier this week, Ather Energy’s board approved the allotment of 16.3 lakh equity shares and 78.4 lakh convertible warrants as part of a ₹1,200 crore preferential fundraise.

Ather allotted 16.3 lakh fully paid-up shares to the India-Japan Fund at ₹1,230 apiece for around ₹200 crore. Hero MotoCorp was also allotted 76.2 lakh convertible warrants at ₹1,260 each, representing an investment of nearly ₹1,000 crore if the warrants are fully converted into shares.

How did Ather Energy shares react?

Ather Energy shares were trading around ₹1,577 in early trade, up 5.5% from the previous close. At 10 am, the stock was quoted at ₹1,563.5, up 4.6%.

The stock has gained around 30% over the past month, according to the supplied market data. At the current market price cited in the source material, Ather Energy’s market capitalisation stood at more than ₹62,000 crore.

The latest transaction comes amid a sharp rise in Ather Energy’s share price, with investors focusing on Hero MotoCorp’s planned increase in its stake and the large block deal.

Conclusion: What does this mean for your portfolio?

Ather Energy shares are in focus after 1.19 crore shares worth around ₹1,758 crore changed hands in a block deal, shortly after Hero MotoCorp announced plans to increase its stake to about 32.8%. Investors will be watching the completion of the transaction by September 3, along with developments related to Ather’s preferential fundraise and its financial performance.