Hero MotoCorp to invest Rs 525 Cr in Euler Motors, acquire 32.5% stake
The primary investment will be made by HMCL in Equity Shares and Series D Compulsory Convertible Preference Shares.
on Thursday said that it will make a strategic investment of up to Rs. 525 crore in one or more tranches in Euler Motors Private Limited.
The investment will consist of a mix of primary and secondary capital, the company added.
Hero's latest investment will help its foray into the electric three-wheeler segment, as designs, manufactures, sells and services electric three and four-wheeler vehicles.
“This investment will provide Hero MotoCorp with a strong foothold in the fast-growing electric three-wheeler market, where EVs are projected to account for 35% of total sales in the near future,” the company said in an exchange filing.
The primary investment is set to be made by HMCL in Equity Shares and Series D Compulsory Convertible Preference Shares.
This would result in an approximately 32.5% stake on a fully diluted basis for HMCL. The acquisition is set to be completed by April 30, this year.
“As we strengthen and diversify our presence in emerging mobility landscape, this investment allows Hero MotoCorp to venture into a rapidly growing electric three and four-wheeler market, while unlocking adjacent business opportunities and continuing to cement its leadership in the future of sustainable mobility,” said Dr. Pawan Munjal, Executive Chairman, Hero MotoCorp.
As per the filing, Euler’s turnover for FY24 stood at Rs. 172 crore. The company has a presence in 30 cities in India, and had recently launched their first electric commercial four-wheeler.
Commercial EV maker Euler had in January secured up to $20 million in debt from responsAbility Investments AG to ramp up production and distribution networks and enhance research and development capabilities.
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