New Delhi, Aug 28 (PTI) Hero MotoCorp on Friday raised its stake in Ather Energy to over 32 per cent by buying shares worth Rs 1,758 crore from the Singapore government through an open market transaction.
Hero MotoCorp Ltd is one of the promoters of electric two-wheeler maker Ather.
According to block deal data on the NSE, Hero MotoCorp Ltd, the country’s largest two-wheeler maker, purchased 1,18,80,000 shares of Bengaluru-based Ather Energy at an average price of Rs 1,480 per share.
This took the transaction value to Rs 1,758.24 crore.
“Following this transaction, the company’s shareholding in Ather stands at 32.8 per cent (on a fully diluted basis),” Hero MotoCorp said in a regulatory filing on Friday.
Meanwhile, the Singapore government sold an equal
number of shares at the same price, according to exchange data.
Ather Energy’s shares jumped 8.09 per cent to close at Rs 1,616.30 apiece on the National Stock Exchange (NSE).
The latest transaction came after Ather’s board in July approved a Rs 1,200 crore fundraise from existing investors, including Hero MotoCorp and India-Japan Fund.
As part of that fundraising, Hero MotoCorp was to invest Rs 960 crore, which was expected to lift its holding to 30.68 per cent from 29.48 per cent following the preferential issue.
The fresh capital will go towards research and development, marketing, debt repayment and general corporate purposes, including Ather’s ongoing ‘Factory 3.0 project’ in Chhatrapati Sambhajinagar in Maharashtra.
The new facility is expected to take Ather’s installed annual production capacity to 1.42 million units.
With the latest open-market purchase, Hero MotoCorp has now hiked its overall holding in Ather to 32.8 per cent, strengthening its position in India’s fast-growing electric two-wheeler market. PTI HG HG BAL BAL
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