Hero MotoCorp shares rise after acquiring Euler Motors for ₹525 crore

Shares of the country's largest two-wheeler maker, Hero MotoCorp, rose as much as 1 per cent on the BSE to hit an intraday high of ₹3,633.25. On the National Stock Exchange, Hero MotoCorp shares rose as much as 0.91% to hit an intraday high of ₹3,630 on Friday, March 21. The stock rose a day after the company informed exchanges that its board approved strategic investment of up to ₹525 crore in Euler Motors Private Limited.

Hero MotoCorp on Thursday said it has forayed into the electric three-wheeler segment by acquiring a 32.5% stake in Euler Motors for ₹525 crore.

"Our strategic investment in Euler is a bold step towards realising our vision to be the future of mobility," Hero MotoCorp Executive Chairman Pawan Munjal said in a regulatory filing.

The investment reinforces the company's commitment to accelerated growth through organic and inorganic expansion while highlighting the power of collaboration and adaptability in an ever-evolving market, Munjal added.

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, the company said.

Hero MotoCorp shares have so far this year dropped nearly 14% in line with the decline in the benchmark NIFTY50 index.

In the quarter ended December 2024, Hero MotoCorp's net profit rose 12% to ₹1,203 crore from ₹1,073 crore in the year-ago period. Its revenue from operations advanced 5% to ₹10,210.78 crore as against ₹9,723.73 crore during the same period last year.

As of 9:27 am, Hero MotoCorp shares traded 0.83% higher at ₹3,626, outperforming the SENSEX which was trading on a flat note.