Hero MotoCorp, the world’s leading two-wheeler manufacturer, is set to acquire a 32.5% stake in electric vehicle company Euler Motors with an investment of ₹525 crore.
In a regulatory filing on March 20, the company stated that its board has approved this strategic investment, which will be made in multiple phases. This move will enhance Hero MotoCorp’s presence in the expanding electric three-wheeler sector, where EVs are projected to account for 35% of total sales in the near future.
Source : Internet
Operating across 30 cities in India, Euler Motors specializes in the development, production, sales, and servicing of electric three-wheelers. The company recently introduced its first electric commercial four-wheeler.
For the financial year ending March 31, 2024, Euler Motors reported a turnover of ₹172 crore, a sharp increase from ₹49 crore in FY23.
Hero MotoCorp confirmed that the investment will primarily be made in Equity Shares and Series D Compulsory Convertible Preference Shares, leading to a 32.5% stake on a fully diluted basis. Additionally, a portion of the investment may be used to acquire shares from existing Euler Motors stakeholders through a secondary transaction.
