The Board of Directors of Hero MotoCorp approved an investment of up to ₹5.5 billion (~$66.3 million) in the rights issue of Indian electric two-wheeler company Ather Energy.

The indicative timeline for the completion of this investment is set for September 30, 2023.

The investment will be made in Series E2 Compulsory Convertible Preference Shares of Ather Energy.

Hero MotoCorp is already an existing shareholder in Ather.

Prior to this investment, Hero MotoCorp held a 33.1% share in Ather, based on a fully diluted basis. The exact shareholding post-investment will be determined upon the completion of Ather’s capital raise round.

The company said the funding serves to reinforce Hero MotoCorp’s commitment to the growth and development of Ather and the electric mobility sector.

The investment involves subscribing to the rights issue of the associate company, making it a related party transaction. Importantly, no promoters, promoter groups, or associated companies have any stakes in Ather Energy, which is receiving the investment.

The transaction is subject to the execution of definitive documents and the fulfillment of customary transaction conditions.

Earlier this year, Hero MotoCorp announced an investment of ₹4.2 billion (~$56.44 million) in Ather Energy to increase its shareholding in the electric two-wheeler manufacturing company. This was the fifth investment by the company in Ather Energy, the first one dating back to 2016. The investments further enhance the collaboration of Hero MotoCorp with Ather Energy on electric-charging infrastructure and technology.

Ather designs and manufactures smart EVs and the associated charging infrastructure. Additionally, the company plays a role in the storage, distribution, and management of electric power, including advanced battery technology.

For the financial year ending March 2023, Ather reported a turnover of ₹18.06 billion (~$224.4 million).

In May, Ather Energy raised $128 million from the National Investment and Infrastructure Fund’s Strategic Opportunities Fund and Hero MotoCorp in a Series E funding round.