Hero MotoCorp will invest up to ₹1,758 crore to raise its stake in Ather Energy from 29.88% to nearly 32.8%. A matching block deal on August 28, 2026 sent Ather shares surging as much as 7% intraday.
Block deal lights up Ather Energy on Friday
Ather Energy shares opened sharply higher on August 28 and extended gains through the morning session, climbing as much as 7% intraday to touch a day's high of ₹1,579.75 on the BSE. The stock had closed the previous session at ₹1,495.30.
The trigger was a large block deal in which 1.19 crore shares of Ather Energy, amounting to roughly 3–3.9% of the company's equity, changed hands at ₹1,480 apiece. The transaction was valued at ₹1,758.24 crore, executed at a slight discount to Thursday's closing price. Exchange data has not officially confirmed the identities of the buyer and seller, but the size and pricing of the deal align closely with an investment Hero MotoCorp announced a day earlier.
Hero MotoCorp's own stock also moved higher on the news, rising about 1–1.5% to trade in the ₹5,608–5,632 range during the session, as investors read the development as a reaffirmation of the company's electric-vehicle ambitions.
What Hero MotoCorp actually approved
On August 27, 2026, Hero MotoCorp's Committee of Directors approved an all-cash purchase of additional equity shares in Ather Energy, worth up to ₹1,758 crore. The shares are being acquired from an existing shareholder of Ather rather than through a fresh issue by the company itself.
Once completed, the deal will lift Hero MotoCorp's fully diluted shareholding in Ather from 29.88%, as recorded on August 25, 2026, to approximately 32.8%. Hero MotoCorp has stated that the transaction does not require any government or regulatory approval and is not classified as a related-party transaction. It is expected to be completed by September 3, 2026.
The table below summarises the key numbers behind the transaction.
| Parameter | Detail |
| Investing company | Hero MotoCorp Ltd |
| Target company | Ather Energy Ltd |
| Deal value | Up to ₹1,758 crore |
| Stake before | 29.88% (as of Aug 25, 2026) |
| Stake after | Up to ~32.8% (fully diluted) |
| Block deal price | ₹1,480 per share |
| Shares transacted | ~1.19 crore (approx. 3–3.9% equity) |
| Expected completion | By September 3, 2026 |
A deepening bet on electric two-wheelers
This is not Hero MotoCorp's first move to consolidate its position in Ather Energy in recent weeks. Just days before this board approval, Ather had allotted convertible warrants worth ₹960 crore to Hero MotoCorp on a preferential basis. Taken together, the two transactions point to an accelerating pace of capital deployment by Hero MotoCorp into its electric-vehicle arm rather than building EV capability independently.
Hero MotoCorp is already Ather Energy's largest external shareholder, and the latest purchase reinforces that position at a time when competition in India's electric two-wheeler space has intensified. Rivals such as Ola Electric, Bajaj Auto and TVS Motor have all been expanding their EV portfolios, making Ather's positioning within Hero's ecosystem a closely watched theme for auto-sector investors.
Ather's business momentum in the background
Ather Energy, known for its Rizta electric scooter and its charging-infrastructure network, has shown accelerating revenue growth in recent years. Its turnover rose from ₹1,753.8 crore in FY24 to ₹2,255 crore in FY25, a gain of about 28.6%, and further jumped to ₹3,671.76 crore in FY26, a 62.8% increase. The company had also reported a narrower quarterly loss in its most recent results, helped by strong demand for the Rizta scooter.
As of July 20, 2026, promoter entities held about 40% of Ather Energy, with the remaining 60% held by public shareholders. Hero MotoCorp's enlarged stake will sit within that promoter-linked shareholding once the current transaction is completed.
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Why the market is paying attention
The scale of Friday's price reaction in Ather Energy shares a move toward its 52-week high and a market capitalisation of roughly ₹63,000 crore reflects how sensitive EV-linked stocks remain to ownership signals from established auto manufacturers. Hero MotoCorp's willingness to keep raising its stake, on top of the recent warrant allotment, is being read by the market as a vote of confidence in Ather's growth trajectory rather than a routine portfolio adjustment.
Both stocks outperformed the broader market on the day, with the Nifty having closed up around 0.23% at 24,147 in the prior session, underlining that this was a stock-specific development rather than a market-wide move.
What investors should track next
The transaction's formal completion, expected by September 3, 2026, will be the next concrete milestone to watch. Any exchange disclosure confirming the counterparties involved in Friday's block deal, along with Hero MotoCorp's subsequent shareholding filings, will help clarify the final stake position.
Beyond the immediate deal mechanics, the broader storyline to follow is how Hero MotoCorp's growing ownership in Ather translates into strategic alignment between the two companies as competition in India's electric two-wheeler market continues to intensify.
