Hero MotoCorp to pump Rs 1,000 Cr into Ather’s Rs 2500 Cr QIP; stock hits record high

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Hero MotoCorp has approved an additional investment of up to Rs 1,000 crore in electric two-wheeler maker Ather Energy, deepening its bet on the Bengaluru-based EV company. Following the announcement, Ather Energy's shares rose over 9% to hit an all-time high of Rs 1,313.8 on Wednesday.
According to a stock exchange filing on Tuesday, Hero MotoCorp's Committee of Directors (COD) approved the subscription of equity shares or other eligible securities of Ather through a preferential allotment
Hero currently owns 29.48% stake in Ather Energy on a fully diluted basis as of June 30, 2026. The company said the final change in its shareholding will depend on the pricing and structure of the proposed preferential issue. The investment will be made in cash and is expected to be completed within 15 days of Ather receiving the required approvals.
The announcement triggered a strong rally in Ather Energy's stock. Shares of the EV manufacturer surged over 9% during Wednesday’s trade to hit an all-time high of Rs 1,313.8 on the NSE.
The development comes weeks after Ather's board approved plans to raise up to Rs 2,500 crore through a qualified institutional placement (QIP), rights issue, preferential allotment, or other permissible routes. The company had said the proceeds would be used for business expansion, product development, investments in subsidiaries, and other corporate purposes.
According to Vahan data, Ather Energy retained the third spot in India’s electric two-wheeler market in June with 31,188 registrations and a 16.12% market share. Sales increased 9.4% from 28,512 units in May, cementing its position among the segment’s top players.
The fundraising plan comes amid improving financial performance. In Q4 FY26, Ather's operating revenue surged 74% year-on-year to Rs 1,175 crore, while its net loss narrowed 57% to Rs 100 crore. For FY26, the company reported revenue of Rs 3,672 crore, up from Rs 2,255 crore in FY25.
Ather's proposed fundraise comes shortly after rival Ola Electric raised Rs 780 crore through a QIP. The issue attracted strong investor interest and saw subscriptions exceed the initial Rs 500 crore target by 56%.
The fresh capital is expected to strengthen Ather's balance sheet as it scales operations, expands distribution, and prepares for its next phase of growth in the rapidly evolving electric mobility market.
As of 11:30 AM (today), Ather’s shares are currently trading at around Rs 1,298, with a total market capitalization of Rs 49,750 crore ($5.23 billion).

document fetched 2026-07-15 08:06