Ather Energy, an electric scooter manufacturer, would receive Rs. 550 crore in investment from Hero MotoCorp. Tarun Mehta and Swapnil Jain established the privately held startup company Ather Energy in 2013.
Hero MotoCorp's board of directors has given the go-ahead for an investment during the Ather rights issue. A company can issue a rights issue when it needs additional capital and wants to keep the voting rights of existing shareholders proportionally balanced. It is called a rights issue because it gives the existing shareholders a pre-emptive right to buy the shares at a price less than the market price.
Hero MotoCorp currently holds 33.1% of the company; the actual stake will be updated once Ather has completed its round of funding, which is likely to be completed before the end of September.
Ather's current shareholders are as follows:
| Shareholders Name | Holdings |
|---|---|
| Enterprise | 34.21% |
| Fund | 31.10% |
| Angel | 15.31% |
| Founders | 12.56% |
| ESOP | 06.78% |
| Others | 00.03% |
Information Source: Tracxn
Ather Energy's market share might double by 30%–40% by the end of the fiscal year 2023–2024 with the support of Hero MotoCorp's investment.
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