Hero MotoCorp has moved to deepen its stake in electric vehicle manufacturer Ather Energy Limited. The two-wheeler giant subscribed to a preferential allotment of convertible warrants, marking a significant capital commitment to its associate company.

The investment structure involves 76,19,047 convertible warrants issued at an issue price of ₹1,260 per warrant. This transaction values the total subscription amount at ₹959.99 crore, widely reported as ₹960 crore. The move aligns with Hero MotoCorp’s earlier disclosure in July 2026 regarding plans to invest up to ₹1,000 crore in Ather.

Deal Structure and Payment Terms

Hero MotoCorp has already disbursed the initial tranche of the investment. The company paid ₹239.99 crore, representing 25% of the total issue price, on August 25, 2026. The remaining 75% of the consideration is not immediately due.

The balance payment will be triggered only when Hero MotoCorp exercises its option to convert the warrants into equity shares of Ather Energy. This deferred payment structure allows the investor to defer the bulk of the capital outflow until a later date, contingent on the exercise of the warrants.

Regulatory Compliance

The transaction was executed in accordance with the Companies Act, 2013, and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. Hero MotoCorp made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency for its listed stakeholders on both the National Stock Exchange and BSE.

Hero MotoCorp Limited has withheld the final dividend for FY26 from certain shareholders who have not updated their bank or Know Your Customer (KYC) details. The company cited regulatory changes mandating electronic dividend payments as the reason for the hold.

The disclosure was made on August 25, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The move affects shareholders whose records are incomplete or whose electronic payment attempts were rejected by banking systems.

Regulatory Context

SEBI amended its listing regulations effective November 19, 2025, discontinuing the payment of dividends through 'payable-at-par' warrants or cheques. Consequently, all dividend payments must now be remitted compulsorily through electronic mode.

Additionally, a series of SEBI circulars, culminating in a master circular dated February 6, 2026, mandated that security holders with physical shares must update their KYC details—including PAN, contact information, mobile number, and bank account details—to be eligible for any payments.

Reasons for Withholding

The company identified three primary categories for withholding the FY26 final dividend:

• Incomplete Bank Details: Shareholders whose registered bank details are missing or incomplete in depository records.
• Electronic Rejection: Cases where the company attempted to remit dividends electronically using available bank details, but the transaction was rejected by the banking system.
• Non-Submission of KYC: Holders of physical shares who have not furnished required KYC documents as mandated by SEBI circulars.

Action Required by Shareholders

Shareholders affected by these holds are requested to take immediate action to receive their dividends:

• Demat Holders: Update valid bank account details, including IFSC and MICR codes, with their Depository Participant (DP).
• Physical Holders: Submit duly filled Form ISR-1 for KYC updation, Form ISR-2 for banker attestation of signature, and Form SH-13 or ISR-3 for nomination updates to the Registrar and Share Transfer Agent (RTA), KFin Technologies Limited.

Once details are updated, shareholders must inform the RTA. The withheld dividends will be released in electronic mode only after confirmation is received.

What the Numbers Show

The withholding applies to dividends payable against shareholdings as on the record date of July 24, 2026. While specific aggregate amounts withheld are not disclosed in this filing, the action highlights a significant compliance shift for retail investors holding physical shares or maintaining outdated digital records.