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Hero MotoCorp has approved an additional investment of up to ₹1,000 crore in the EV company, sending Ather Energy’s shares up 7% intraday in Tuesday's trading session.
The why: Hero already owns nearly 30% of Ather. This fresh investment will help Ather expand its manufacturing capacity, build new electric scooters and strengthen its fast-growing charging network.
More money is coming in: the Government of India will invest ₹200 crore in Ather's proposed ₹1,200 crore fundraise through the India-Japan Fund (IJF).
The $600 million bilateral fund was set up by the Government of India and the Japan Bank for International Cooperation (JBIC) to support strategic investments.
Back in 2016, when electric scooters were still a niche idea, Hero invested ₹205 crore in Ather Energy. Fast forward a decade, the homegrown EV maker is now a listed company, with its stock trading nearly 300% above its IPO price. Hero's original investment is now estimated to be worth around ₹14,000 crore.
The business: Ather's revenue nearly doubled to ₹1,175 crore in the March quarter, up from ₹676 crore a year ago.
The sale of electric two-wheelers and related services remains Ather Energy’s sole source of revenue, and during the quarter, it sold around 79,251 vehicles.
The big picture: India's electric two-wheeler market continues to gather pace. Registrations rose 12.2% month-on-month to 1.93 lakh units in June.
TVS Motor retained the top spot, while Hero MotoCorp recorded the fastest growth among the five largest manufacturers. Ather, meanwhile, held on to the third position, selling 31,188 electric scooters during the month and capturing a 16.1% market share.
