Hero MotoCorp said on Monday that the company’s board has approved a rights issue investment of up to 5.5 billion rupees in Ather Energy.
The company said in a stock exchange filing that the investment is contingent on the execution of final documents and the fulfillment of certain conditions customary to the transaction.
Ather, an existing associate company of Hero MotoCorp, is engaged in the design, manufacture, sale and service of electric two-wheelers. In addition, Ather owns the charging infrastructure and is engaged in the storage, distribution and management of electricity (including energy in the form of batteries) and other ancillary services.
Turnover for the year ending March 2023 at Rs. 1,806.1 crore.
“This is not an acquisition, but subscription of Ather’s rights issue by Hero MotoCorp Ltd. The company is an existing shareholder of Ather. No government or regulatory approval is required,” the company said.
The completion date of the acquisition is expected to be September 30.
