Pawan Munjal-led HeroMoto Corp (HMCL) on Tuesday said it has increased its stake in electric scooter start-up Ather Energy to 35.10 per cent. Prior to the proposed investment, HMCL's shareholding in Ather was 32.31 per cent.
"The shareholding of the Company in Ather has increased to 35.10% (31.27% on a fully diluted basis) from 32.31% (29.94% on a fully diluted basis)," HeroMoto Corp said in a filing to the Bombay Stock Exchange.
Bengaluru-based Ather Energy is an Indian electric vehicle company founded by IIT graduates Tarun Mehta and Swapnil Jain in 2013. It manufactures two electric scooter models, the Ather 340 and Ather 450.
HeroMoto Corp, India's largest two-wheeler manufacturer, had invested Rs 130 crore to acquire 66,320 Compulsorily Convertible Debentures (CCDs) of Ather in July 25, 2018.
"The next funding round of Ather has now been completed and simultaneous with the completion of this round, the CCDs issued to the company have been converted into compulsorily convertible preference shares (CCPS)," it said in the exchange filing.
The auto major, which is yet to develop electric scooters and motorcycles, is backing this e-vehicle maker. It had made a commitment to invest Rs 205 crore in the smart electric two-wheeler start-up in 2016.
"As the market leader and a global automotive major, Hero MotoCorp takes the lead in many areas that benefit the environment, customer and the industry. Adoption of environment-friendly fuel is a priority for Hero MotoCorp, as is propagating sustainable manufacturing through green facilities. Hero MotoCorp intends to enhance its participation in the EV space by partnering with Ather in addition to pursuing its internal EV program," the auto major said.
Apart from Hero Moto Corp, Ather has raised funds from Flipkart founders Sachin Bansal and Binny Bansal and US hedge fund titan Tiger Global.
Meanwhile, HeroMoto Corp shares closed trade at Rs 2,749.95 apiece, up 2.55 per cent, on the Bombay Stock Exchange.
Edited by Chitranjan Kumar