The Splendor-maker, which currently holds 33.1% of Ather, will see its shareholding rise in the company. The transaction is expected to be completed before the end of September.

The exact increase in Hero MotoCorp's shareholding in Ather will be known after the rights issue concludes.

Ather currently sells the 450X and 450S in the Indian market. It recorded sales of 6,620 units in July, with a market share of 0.5% in the overall two-wheeler market, data from the Federation of Automobile Dealers Associations showed.

It had a turnover of Rs 1,806 crore in fiscal 2023, up manifold from Rs 414 crore in FY22.