Hero MotoCorp Limited has announced a strategic investment of approximately ₹960 crore in electric vehicle manufacturer Ather Energy Limited through a preferential issue of convertible warrants, further strengthening its long-term partnership with the company.
The investment follows the approval by Ather Energy’s Board of Directors on 15 July 2026 to issue and allot 7,619,047 convertible warrants to Hero MotoCorp on a preferential basis at an issue price of ₹1,260 per warrant, representing an aggregate subscription value of ₹959.99 crore.
Each warrant will be convertible into one equity share of Ather Energy with a face value of ₹1 within 18 months from the date of allotment, subject to the receipt of all necessary regulatory and shareholder approvals.
As part of the subscription terms, Hero MotoCorp will pay 25% of the issue price at the time of subscribing to the warrants, while the remaining 75% will be payable upon exercising the warrants for conversion into equity shares.
Upon full conversion of the warrants, Hero MotoCorp’s shareholding in Ather Energy is expected to increase from 29.48% to 30.68% on a fully diluted basis, based on Ather’s capital structure as of 10 July 2026 and assuming all outstanding employee stock options (ESOPs) and the newly issued warrants are fully converted.
The proposed investment follows Hero MotoCorp’s earlier announcement that its Committee of Directors had approved an investment of up to ₹1,000 crore in Ather Energy through a preferential issue, subject to regulatory approvals.
The company said the transaction remains subject to the completion of statutory approvals, including approval from Ather Energy’s shareholders for the preferential allotment.
