- 06 Sep 2022
- ICICIdirect Research
Ather Energy plans new round of funding
HEROMOTOCO - 5455 Change: 80.90 (1.51 %)News: As per media sources, Hero MotoCorp backed 2-W EV player, Ather Energy, plans to raise $200-250 million equity funding to further expand its operation, supply chain capacity, research and development and charging infrastructure. It is primarily aimed at ramping up capabilities amid increasing competition in the e-mobility space.
View: Hero MotoCorp in its earlier interactions showcased commitment towards investment in Ather Energy and willingness to participate in funding rounds. HMCL currently holds 35% stake in the company and had invested Rs 420 crore as part of recent fund raise in the recent past in H1CY22. This fresh fund raise in quick succession comes as a negative surprise but it remains to be seen the exact quantum of fund raise and at what valuations. The key monitorable for Hero MotoCorp in the near term is its own product launch in the electric 2-W domain near festive season.
Impact: Neutral.