News: In a regulatory filing, Hero MotoCorp has informed exchanges that it has purchased additional 2.2% stake in its associate company (equity stake pegged at ~35%) i.e. Ather Energy (prominent player in Electric Mobility) via secondary stake purchase for a sum of ~₹124 crore.
Views: As per this transaction, Aher Energy is being valued at ~₹ 5,640 crore (~3x P/S on FY24) vs. media articles in the past indicating Ather’s Valuation at ~US$ 2 billion (~₹16,500 crore). With Ather approaching IPO in near future, this bodes well for Hero MotoCorp and shall incrementally contribute to our target price calculation.
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