Hero MotoCorp: Finalizes Ather Energy Stake Acquisition, INR 1758 Cr

• Hero MotoCorp is acquiring an additional stake in Ather Energy Limited for approximately INR 1,758 crore.
• This secondary purchase will increase Hero MotoCorp's fully diluted stake in Ather Energy to 32.8% from its current 29.88%.
• The transaction is an all-cash deal from an existing shareholder, with funds going to the seller, not Ather Energy directly.
• Cyril Amarchand Mangaldas advised Hero MotoCorp on the acquisition, which was finalized by September 3, 2026.
• The investment strengthens Hero MotoCorp's strategic holding and position as Ather Energy's largest shareholder.

The entire consideration of INR 1,758 crore will be paid in cash to the selling shareholder, underscoring the nature of a secondary market transaction.

Hero MotoCorp Limited has announced a significant increase in its ownership stake in Ather Energy Limited, an electric vehicle manufacturer. This strategic move involves an additional investment valued at approximately INR 1,758 crore, solidifying Hero MotoCorp's position as the largest shareholder in Ather Energy. The transaction is structured as a secondary purchase, meaning Hero MotoCorp is acquiring shares from an existing shareholder of Ather Energy, rather than directly injecting fresh capital into the company itself.

Upon completion, this acquisition will elevate Hero MotoCorp's holding in Ather Energy to 32.8% on a fully diluted basis. Prior to this deal, Hero MotoCorp's shareholding stood at 29.88%. The entire consideration of INR 1,758 crore will be paid in cash to the selling shareholder, underscoring the nature of a secondary market transaction. Hero MotoCorp finalized this acquisition by September 3, 2026, marking a notable development in the India EV sector M&A landscape.

The complex legal aspects of this Hero MotoCorp Ather Energy stake acquisition were managed by Cyril Amarchand Mangaldas, who provided advisory services to Hero MotoCorp Limited. Their involvement highlights the intricate legal requirements and due diligence necessary for such substantial secondary share purchases, especially when dealing with a listed entity like Ather Energy.

The legal team from Cyril Amarchand Mangaldas advising Hero MotoCorp was led by Partners Ruetveij Pandya and Abhilasha Malpani. They received support from Senior Associate Anoushka Ishwar, alongside Associates Aanchal Jain and Simran Srivastava. This team's expertise was crucial in navigating the specifics of an all-cash secondary purchase from an existing shareholder, ensuring compliance and smooth execution of the INR 1,758 crore Ather stake transaction.

This Hero MotoCorp Ather Energy investment is more than just a financial transaction; it represents a strategic consolidation for Hero MotoCorp within the rapidly evolving electric vehicle market. By increasing its stake, Hero MotoCorp not only strengthens its strategic influence over Ather Energy but also reinforces its commitment to the EV sector, a critical area for future growth in the automotive industry. The deal underscores a trend of major players enhancing their positions in promising EV ventures through significant M&A activities.

Furthermore, the structure of this deal, specifically as an all-cash secondary purchase from an existing shareholder, provides a valuable precedent for future transactions in the Indian market. It demonstrates a mechanism for large-scale ownership changes without direct capital infusion into the target company, offering flexibility for investors and existing shareholders. This transaction, advised by Cyril Amarchand Mangaldas, showcases the increasing sophistication and scale of investment in India's burgeoning EV ecosystem.

This transaction illustrates significant M&A activity in India's EV sector, providing a precedent for structuring large secondary share purchases and highlighting the role of major legal advisors like Cyril Amarchand Mangaldas in such deals. Lawyers advising on similar transactions should note the deal structure and valuation.

Source: Original reporting via legal industry press release