India’s largest two-wheeler maker Hero MotoCorp is set to acquire up to 30 per cent stake in Bengaluru-based Ather Energy Pvt by investing up to Rs 205 crores.
"The board of directors of the company, in its meeting held on October 26, 2016, approved an investment of up to Rs 205 crore, in one or more tranches, for approximately 26-30 per cent shareholding in Ather Energy Private Ltd," Hero MotoCorp said in a BSE filing.
Ather is a Bengaluru-based technology start-up engaged in the business of designing and manufacturing smart electric vehicles (EVs) and associated charging infrastructure.
The strategic investment is subject to execution of definitive agreements and completion of certain conditions customary for a transaction of this nature.
It further said: "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."
It added: "Hero MotoCorp intends to enhance its participation in the EV space by pursuing its internal EV programme, in addition to partnering with Ather."
The stock of Hero MotoCorp was trading at Rs 3,373.05 on BSE, down 1.42 per cent, from the previous close.