Hero MotoCorp Raises Ather Energy Stake To 32.8% in ₹1,758-Crore Share Purchase

Hero MotoCorp has completed the purchase of 1,18,80,000 equity shares in Ather Energy for approximately ₹1,758 crore, raising its fully diluted shareholding in the electric scooter maker to roughly 32.8 per cent. The transaction, disclosed to stock exchanges on Friday under Regulation 30 of the SEBI Listing Regulations, follows the Committee of Directors' approval a day earlier and settles the acquisition of shares from an existing Ather shareholder, whose identity was not disclosed.

The purchase pushes Hero's stake up from 29.88 per cent as of August 25, continuing a pattern of periodic top-ups that stretches back to its original 2016 investment in Ather. That holding has fluctuated over the years — diluted by successive funding rounds and Ather's May 2025 initial public offering, then partially replenished through targeted purchases such as this one. Notably, Hero did not sell any shares when Ather listed, choosing instead to remain its largest external shareholder.

A block deal matching the transaction's value was executed on the NSE on Friday at ₹1,480 a share, a marginal discount to Ather's previous close. The company said the purchase requires no regulatory approvals and does not constitute a related-party transaction, with completion due by September 3. Hero's filing was strictly procedural; it offered no rationale for the increased stake, and no executive from either company has commented publicly on the deal itself.

The move comes as Hero balances two parallel tracks in India's electric two-wheeler segment: its own Vida range, which has climbed to roughly 11 per cent market share and fourth position among manufacturers, and its financial stake in Ather, currently ranked third with around 16 per cent share. The wider market has grown sharply through 2026, with legacy manufacturers — Hero, TVS, Bajaj Auto and Ather itself — together accounting for the bulk of new registrations, while Ola Electric's share has fallen as it cedes ground built earlier in the segment's growth.

Ather, meanwhile, has been narrowing losses as volumes scale up. Its most recent quarterly results showed revenue climbing sharply year-on-year alongside a substantially reduced net loss, helped by strong demand for its Rizta and 450-series scooters. The stock has more than doubled over the past year, and shares rose as much as seven per cent on Friday following news of Hero's enlarged stake, while Hero's own shares edged up marginally.

For Hero, the additional stake represents a further commitment to an EV strategy that increasingly leans on Ather's technology and brand strength to complement its in-house electric portfolio, even as the company continues to expand Vida's manufacturing capacity and product range independently.