Shares of Hero MotoCorp on Monday jumped nearly 6 per cent after the company's board approved further investment of up to Rs 420 crore in electric two-wheeler company Ather Energy.
The stock rallied 5.87 per cent to Rs 2,721.45 on the BSE.
At the NSE, it jumped 5.92 per cent to Rs 2,722.
The company's board has approved the investment in one or more tranches, Hero Motocorp said in a statement.
Prior to the proposed investment, the company's shareholding in Ather Energy stood at 34.8 per cent (on a fully diluted basis).
After the investment, the shareholding will increase and the exact shareholding will be determined upon the completion of the capital raising round by Ather, Hero MotoCorp stated.
"In keeping with our vision, 'Be the Future of Mobility', we are working on a variety of emerging mobility solutions.
"We were one of the early investors in Ather Energy and have continued to expand our association over the years. We are excited to see the growth of Ather Energy in recent years," Hero MotoCorp Head (Emerging Mobility Business Unit) Swadesh Srivastava noted.
The company aims to expand the Hero MotoCorp brand promise and make EV ownership a convenient, hassle-free, and rewarding experience for customers across the world, he added.
Hero MotoCorp is an early investor in Ather Energy and has been part of its growth story since 2016.