Hero Electric Tuesday said it has raised Rs 160 crore from investment management firm Alpha Capital Advisors to fund its future expansion.
With this investment, the Mumbai-based firm has become a "significant minority stakeholder" in Hero Electric.
"This is our first external fund raising. Till now, we had only raised funds internally. The raised capital will be utilised to set up a new plant, diversify our product portfolio and acquire new technology," Hero Electric Managing Director Naveen Munjal told PTI.
The funds would also be utilised to strengthen the company's research and development capabilities to achieve certain rate of localisation, he added.
When asked about the quantum of stake divestment to Alpha Capital, Munjal said, "It is more than 10 per cent but less than 25 per cent."
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