Two-wheeler maker Hero MotoCorp Ltd on Thursday (March 20) announced a strategic investment of up to ₹525 crore in Euler Motors Private Limited, marking its entry into the electric three-wheeler segment. The investment, approved by Hero’s Board of Directors, will be made in one or more tranches and aligns with the company’s push toward sustainable mobility solutions.
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The primary investment will be made through equity shares and Series D compulsory convertible preference shares (CCPS), giving Hero MotoCorp an approximate 32.5% stake on a fully diluted basis in Euler Motors.
Additionally, a portion of the investment may be used to acquire shares from existing shareholders through a secondary sale. 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.
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Euler Motors has a presence in 30 cities in India and is engaged in the designing, manufacturing and sale & service of electric three-wheelers. They recently launched their first electric commercial four-wheeler.
Additionally, the board has approved the establishment of a Section 8 company under the Companies Act, 2013, to drive Corporate Social Responsibility (CSR) initiatives.
“Our strategic investment in Euler is a bold step towards realizing our vision to “Be the Future of Mobility.” This investment reinforces our commitment to accelerated growth through both organic and inorganic expansion while highlighting the power of collaboration and adaptability in an ever-evolving market,” Pawan Munjal, Executive Chairman of Hero MotoCorp said.
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Shares of Hero Motocorp Ltd ended at ₹3,596.90, up by ₹61.10, or 1.73%, on the BSE.
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