Hero MotoCorp, the world’s top two-wheeler maker, said on Monday it plans to invest up to $66.5 million in Ather Energy, a promising electric vehicle startup in India whose fast-growing fortune had to hit brake after a local policy change.
Hero MotoCorp, which already owns a 33.1% stake in the Bengaluru-headquartered Ather Energy, disclosed (PDF) in a stock exchange filing that its board of directors had approved a fresh investment of up to $66.5 million in the rights issue of Ather Energy.
Prior to the new investment, Ather Energy has raised $336 million over the years from investors including Tiger Global, Flipkart founders Sachin Bansal and Binny Bansal, and India’s quasi-sovereign fund NIIF, according to Tracxn. It was valued at $739 million in a round last year.
Ather Energy, which was on track to hit $1 billion in revenue by December this year, recently hit a roadblock after the Ministry of Heavy Industries cut the subsidy it offers for two-wheelers, dealing a blow to Ather, that like many other EVs, has been a huge beneficiary of state and federal subsidies in recent years.
Prior to the policy change, Ather was in talks to close a round of about $250 million at a valuation of over $1 billion. Binny Bansal, an investor in Ather, in fact, told a podcast’s audience that Ather had become a unicorn.
How Ather Energy will be valued in the rights issue hasn’t been determined yet, Hero MotoCorp suggested, but added that its stake will increase in the startup. Ather Energy had a turnover of $218.3 million in the financial year ending March this year, according to Hero.
Two-wheelers are leading the charge for electrification in India, as the costliness of battery-powered cars remains prohibitive for many consumers. By transitioning over 70% of India’s total vehicles, which are two-wheelers, to greener alternatives, the South Asian nation can address its air pollution issues. Consultancy firm Arthur D. Little projects that by 2030, electric vehicles will constitute roughly 30% of all vehicle sales in India.
Hero MotoCorp’s fresh investment in Ather comes at a time when the world’s largest manufacturer of motorcycles and scooters is increasingly trying to expand its electric vehicle portfolio. Last year, Hero MotoCorp launched its first electric vehicle.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
