Here's why Hero MotoCorp shares rose 6% in early trade today

Shares of Hero MotoCorp Limited rose 6 per cent to hit an intraday high of Rs 2,721.45 on the Bombay Stock Exchange (BSE) after the company announced a new investment of up to Rs 420 crore in Ather Energy.
 
"The company’s board has approved the investment in one or more tranches. Before the proposed investment, Hero MotoCorp’s shareholding in Ather Energy was 34.8 per cent (on a fully diluted basis). Post the investment, the shareholding will increase and the exact shareholding will be determined upon completion of capital raise round by Ather," Hero MotoCorp said in a regulatory filing.
 
The stock opened 1 per cent higher at 2596.00 against the previous close of Rs 2570.55. With a market capitalisation of more than Rs 54,000 crore, the shares stand higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.
 
Hero MotoCorp informed that it is an early investor in Ather Energy and has been a part of its growth story since 2016. The company is also exploring collaborations with Ather Energy in various spheres, such as charging infrastructure, technology and sourcing.
 
Commenting on the development, Swadesh Srivastava, Head – Emerging Mobility Business Unit, Hero MotoCorp said, “We were one of the early investors in Ather Energy and have continued to expand our association over the years. We are excited to see the growth of Ather Energy in recent years. Our aim is to expand the Hero MotoCorp brand promise and make EV ownership a convenient, hassle-free, and rewarding experience for customers across the world.” 
 
Hero MotoCorp said that it is gearing up to unveil its first Electric Vehicle (EV) in March this year. The vehicle is being developed at the company’s world-class R&D set-up – the Center of Innovation and Technology (CIT) in Jaipur and the Tech Center Germany (TGG) near Munich – and will be produced at the company’s manufacturing facility at Chittoor in the southern Indian state of Andhra Pradesh.
 
"Through its investments and partnerships with external partners like Ather Energy and Gogoro Inc., Hero MotoCorp is also working towards building the entire EV ecosystem – from products to technology, to sales, service, customer care, operations, and innovation," the company added.
 
Recently, the company appointed Arun Jaura, an engineering and technology expert as the Chief Technology Officer (CTO) to lead the extensive Research & Development (R&D) ecosystem.
 
Jaura, an M.Tech from the Indian Institute of Technology, Madras (1989-1991) has done a Ph.D. from Concordia University (1992-1996), Montreal. 
 
Before joining in, he was the Managing Director of Michelin India Technology Center since 2017, where he managed the R&D and the sustainability functions, and also represented the Michelin Pune site of more than 1100 engineers and technologists.