Hero MotoCorp has announced a ₹1,758 crore investment in electric scooter maker Ather Energy, significantly increasing its stake to 32.8% from the previous 29.88% held as of August 25, 2026. The block deal involving 1.18 crore shares at ₹1,480 apiece was completed on Friday, with the Government of Singapore serving as the seller in this substantial transaction. As per The Economic Times, Ather Energy shares gained nearly 4% to ₹1,534.30 in Friday's trading session following the transaction announcement. The stock opened 2% higher at ₹1,523.70 and extended gains to make a high of ₹1,618.50, up 10%, before trading at ₹1,564.50, up 4.6% as of 9:55 AM. The investment comes as Ather prepares for its next leg of capacity expansion amid strong demand for its electric scooters. The transaction is expected to be finalized by September 3, 2026, with the company not identifying the selling shareholder. Hero MotoCorp's committee of directors approved the acquisition on August 27, 2026, with no government or regulatory approvals required for the transaction.
Ather Energy has introduced Konarc, its new electric scooter aimed at expanding the company's presence in the mass-market electric two-wheeler segment. The scooter was unveiled on August 29, 2026 at the company's Ather Community Day 2026 in Bengaluru. Konarc will be offered across Ather's S and Z product lines, with six variants offering Indian Driving Cycle (IDC) ranges of up to 200 km. The S line will have four variants with ranges of 100 km, 125 km, 161 km and 200 km, while the Z line will offer 125 km and 161 km variants. The Konarc S 100 km is priced at ₹99,999, while the S 125 km and S 161 km variants are priced at ₹1,21,999 and ₹1,44,999 respectively, effective ex-showroom Bengaluru. The scooter will be available in Quartz White, Lumen Copper, Celestial Gold, and Majestic Grey for S variants, with higher-end Z variants in Steel Blue and Claret Red. The company said the S 125 km and S 161 km variants will be available initially, with bookings and deliveries beginning in mid-September in a phased manner across select states before a wider rollout. As per Goodreturns, the launch comes nearly a day after Ola Electric launched the S1Z scooter with in-house LFP battery technology.
Ather Energy has successfully raised ₹2,500 crore through two capital initiatives, combining a ₹1,300 crore qualified institutional placement (QIP) at ₹1,202 per share with a ₹1,200 crore preferential issue. The QIP was oversubscribed with participation from investors including HDFC Trustee Company and Aditya Birla Sun Life Mutual Fund. The preferential issue received 97.72% shareholder approval and involved allotment of 16.26 lakh equity shares to the India-Japan Fund at ₹1,230 per share, worth approximately ₹199.99 crore. Hero MotoCorp, Ather's largest shareholder, was allotted 79.36 lakh convertible warrants at ₹1,260 each, representing an investment of nearly ₹959.99 crore if fully converted. The warrants require a 25% upfront payment with the remaining 75% payable when investors choose to convert. Ather also witnessed a block trade during Friday's session with around 11.9 million shares changing hands, representing approximately 3% of the company's equity. The buying interest was accompanied by a sharp increase in trading volumes with more than 4 million shares changing hands in the first 40 minutes compared with 2.7 million shares traded during the previous session.
The fundraise will significantly increase Hero MotoCorp's stake in Ather Energy to 32.8% on a fully diluted basis, up from its previous 29.88%. Ather co-founders Tarun Mehta and Swapnil Jain were each allotted 1.59 lakh warrants at the same price, amounting to approximately ₹19.99 crore each. Their holdings will decline slightly to 4.73% from 4.80% on a fully diluted basis. The India-Japan Fund's holding will increase to 6.02% from 5.60% following this transaction. As of July 20, 2026, promoter entities held 40% stake in Ather Energy while public shareholding comprised 60%, as per stock exchange data. Ather disclosed that ₹625 crore from the preferential issue will be used to repay borrowings. The post-allotment shareholding pattern shows Hero MotoCorp with 32.8%, Mr. Tarun Mehta with 4.73%, and Mr. Swapnil Jain with 4.73%. Hero MotoCorp first invested in Ather Energy in 2016, putting in around ₹180-200 crore, with its investment now estimated to be worth around ₹14,000-15,000 crore, implying nearly sevenfold returns. For Hero MotoCorp, Ather represents a long-term EV platform rather than a short-term financial investment, as the company's own ICE two-wheeler business remains large while the electric scooter market has become a key battleground as consumers shift gradually toward battery-powered mobility.
Ather has demonstrated strong financial growth, recording a turnover of ₹3,671.76 crore for FY26 compared to ₹2,255 crore in FY25 and ₹1,753.8 crore in FY24. For the June 2026 quarter, Ather Energy had reported a narrowing of consolidated net loss at ₹51.09 crore, riding on strong sales. The company's wholesales in Q1 were at 83,173 units as compared to 46,078 units in the year-ago period, a growth of 81%. On a consolidated basis, revenue from operations surged 88.8% YoY and 3.6% QoQ to ₹1,216.92 crore in the quarter ended 30 June 2026. The company's adjusted gross margin stood at ₹282 crore, up 82.3% YoY, though the adjusted gross margin percentage moderated to 22% from 23% a year ago. Ather reported positive EBITDA of ₹9.45 crore in Q1 FY27 against an EBITDA loss of ₹105.97 crore in Q1 FY26, with EBITDA margin improving to 1% from a negative 16% last year. The company operates as an existing associate of Hero MotoCorp and is engaged in designing, manufacturing, selling and servicing electric two-wheelers, while also operating its own charging infrastructure and being involved in the storage, distribution and management of electric power including battery energy and ancillary services. As of 30 June 2026, Ather held 323 registered trademarks, 270 registered designs and 52 registered patents globally. Goodreturns reports that Ather Energy share price closed 9.29% higher at ₹1,612 per share on Friday, August 28, with the stock touching an intraday high of ₹1,629.15 and reaching its 52-week high. The scrip has surged around 68% in three months and 126% in six months.
