Hero MotoCorp ends as top Nifty50 gainer on Monday; stock up 5% after company announces investment in Ather Energy

Auto major Hero MotoCorp shares today ended as a top gainer, up over 5 per cent to settle at Rs 2701.85 per share on the BSE. The rally after the company announced its investment of Rs 420 crore in the electric vehicle two-wheeler company Ather Energy on Friday. 

According to the press statement of Hero Moto, “Aligned with its vision - ‘Be the Future of Mobility’, Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, has announced a new investment of up to Rs 420 crore in Ather Energy.” 

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The company’s board has approved the investment in one or more tranches, the auto heavyweight said in a BSE filing on January 14, 2022. 

Prior to the proposed investment, Hero MotoCorp’s shareholding in Ather Energy was 34.8 per cent, which is on a fully diluted basis. However, post the investment, the shareholding of the auto major will increase, and the exact stake will be determined upon completion of capital raise round by Ather. 

Hero MotoCorp is an early investor in Ather Energy and has been a part of its growth story since 2016. Hero Moto is also exploring collaborations with Ather Energy in various spheres, such as charging infrastructure, technology and sourcing. 

Hero MotoCorp is working towards building the entire EV ecosystem – from products to technology, to sales, service, customer care, operations, and innovation, the press statement said in release. 

The counter has been the worst performer in the calendar year 2021 and it has reported negative growth of over 14 per cent in the last one year as compared to around 23 per cent rise in the Sensex. 

The stock on Monday also led the auto index to surge, as Nifty Auto closed as top sectoral gainer up over 2 per cent as compared to 0.14 per cent rise in the S&P BSE Sensex.