Ather Energy share price jumps 10% | here's why

Ather Energy shares surged nearly 10% on Friday, 28 August, after Hero MotoCorp announced an investment of up to ₹1,758 crore in the electric two-wheeler maker. The investment will raise Hero MotoCorp’s stake in Ather Energy to around 32.8% on a fully diluted basis.

Hero MotoCorp held a 29.88% stake in Ather Energy as of 25 August. The latest acquisition is expected to increase its fully diluted shareholding to around 32.8%, up from 29.88%. The transaction is likely to be completed by 3 September.

According to Hero MotoCorp’s regulatory filing, the proposed transaction does not qualify as a related-party transaction. The company also stated that none of its promoters, promoter group entities or group companies has any interest in the entity from which the Ather Energy shares are being acquired.

Hero MotoCorp added that the transaction does not require any government or regulatory approvals.

The investment further consolidates Hero MotoCorp’s position in India’s fast-growing electric two-wheeler segment. Ather Energy is engaged in the design, manufacturing, sale and servicing of electric scooters and operates its own network of charging infrastructure.

Beyond electric two-wheelers, the company also has operations spanning the storage, distribution and management of electricity, including battery-based energy, as well as related ancillary services.

On 14 August, Ather Energy announced that shareholders had approved a ₹1,200 crore preferential issue, with 97.72% of the votes cast in favour of the resolution at the company’s extraordinary general meeting.

The preferential issue, combined with Ather Energy’s recently completed ₹1,300 crore qualified institutional placement (QIP), takes the electric two-wheeler maker’s total capital raised to around ₹2,500 crore, according to an exchange filing.

The company plans to deploy the fresh capital towards expanding manufacturing capacity, strengthening product and technology capabilities, and improving its balance sheet.

Ather Energy share price today

Ather Energy share price today opened at ₹1,526.65 apiece on the BSE, the stock touched an intraday high of ₹1,618.50 per share, and an intraday low of ₹1,525 per share.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the stock has extended its winning streak, closing higher for three consecutive sessions on the daily timeframe. It has also broken out of its recent consolidation range following the pullback, signalling renewed buying interest. The stock continues to trade above its 20-day and 50-day EMAs, reinforcing the positive trend.

The RSI has formed a base around the 60 level before moving into bullish territory, indicating improving momentum. The breakout has also been accompanied by rising volumes, adding strength to the upmove. Meanwhile, the MACD remains above the zero line and shows an upward trend, suggesting further strengthening of momentum and supporting the possibility of a continued rally.

Overall, Shah said the technical setup remains constructive, with sustained buying interest visible in the stock.

“Hence, we recommend accumulating the stock in the ₹1,592–1,607 range, with a stop-loss at ₹1,550. On the upside, the stock has the potential to move towards ₹1,715 in the short term,” he said.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.