Summary:
Ather Energy shares jumped nearly 10% after Hero MotoCorp announced an investment of up to ₹1,758 crore, increasing its stake in Ather to around 32.8%. The move, along with recent ₹2,500 crore capital raised through preferential and QIP issues, strengthens Ather’s funding for manufacturing, product development and technology expansion. Strong investor interest in India’s growing electric two-wheeler market also supported the rally.
The shares of Ather Energy jumped nearly 10% on Friday, August 28, after Hero MotoCorp announced an investment of up to ₹1,758 crore in the electric two-wheeler maker. The investment will see Hero MotoCorp increase its stake in Ather Energy to around 32.8% on a fully diluted basis, thus bolstering its position in India’s burgeoning electric two-wheeler market.
Ather Energy stock opened at ₹1,526.65 on the BSE and rose to a high of ₹1,618.50 intraday, with the intraday low at ₹1,525. The stock had closed at ₹1,495.90 on the previous day.
Why Ather Energy Share Price Surged?
The main catalyst for the strong share price performance of Ather Energy was the news of additional investment by Hero MotoCorp in the electric vehicle maker in the form of purchase of equity shares from an existing shareholder. Hero MotoCorp had a 29.88% stake in Ather Energy as of August 25, 2026. Post the proposed transaction, Hero MotoCorp’s fully diluted shareholding in Ather Energy is set to increase to approximately 32.8%, which is an increase of 2.92 percentage points.
The transaction is expected to be completed by September 3, 2026. It was also clarified that the transaction does not constitute a related-party transaction and none of the promoters, promoter group entities or group companies of Hero MotoCorp have any interest in the entity from which the Ather Energy shares are being purchased. Furthermore, the transaction does not require any approvals from the government or regulators.
₹1,758 Crore Block Deal Sparks Buying Interest
Investors’ interest in Ather Energy was further sparked by a large block deal of ₹1,758.24 crore executed during the morning block deal window on the NSE on August 28. The deal involved 1,18,80,000 Ather Energy equity shares. The buyer and seller of the block deal were not identified from the exchange data available during the morning session.
Notably, the value of the block deal was in line with the ₹1,758 crore consideration involved in the proposed additional stake purchase by Hero MotoCorp, even though the exchange data did not reveal the parties involved in the block deal.
Ather Energy stock jumped nearly 5.6% to ₹1,579.90 before trimming some gains to trade at around ₹1,559.40 or 4.2% higher during the morning session. It subsequently soared to₹1,618.50, thereby pushing the overall intraday gain close to 10%.
Fresh Capital Infusion Bolsters Ather Energy
The latest development comes after Ather Energy raised significant capital in the form of a ₹1,200 crore preferential issue, which became effective on August 14. The shareholder approval for the preferential issue came through with 97.72% of the votes cast in its favour. Besides, the recently concluded ₹1,300 crore qualified institutional placement, which was completed on August 12, Ather Energy has raised around ₹2,500 crore.
The company plans on using the fresh capital to scale up its manufacturing capabilities, augment its product and technology portfolio and strengthen its balance sheet.
Ather Energy designs, manufactures, sells and services electric scooters and owns and operates its charging infrastructure. Additionally, its business encompasses the storage, distribution and management of electricity including battery-based electricity and ancillary services as well.
Ather Energy Stock Performance
Ather Energy has witnessed more than 262% returns on its shares over the past year and it has gained more than 110% year-to-date (YTD). The stock has gained 29.5% in the past month and 6.5% in the last five trading sessions.
It touched a 52-week high of ₹1,580 on August 12, 2026, compared to its 52-week low of ₹421.60 recorded on August 29, 2025. Its market capitalisation stood at around ₹61,690 crore on August 28.
With Hero MotoCorp increasing its stake, significant fresh capital being raised and sustained momentum in the electric two-wheeler segment, Ather Energy continues to remain in focus among investors.
