National Investment and Infrastructure Fund’s Successful Exit from Ather Energy

National Investment and Infrastructure Fund has efficiently executed its exit from electric two-wheeler manufacturer Ather Energy, securing an impressive return exceeding 3X within only three years. According to Ather’s red herring prospectus, the NIIF supported the Bengaluru-based electric vehicle producer in 2022 by investing Rs 374.5 crore during its Series E funding round. The fund acquired 76,546 preference shares at an issuance price of Rs 48,926 each.

Pre-IPO Restructuring of Ather Energy

Prior to Ather’s public listing, the company underwent a pre-IPO restructuring, which included the issuance of bonus shares at a 1:261 ratio to preference shareholders, alongside a preferential bonus allotment. This restructuring significantly lowered NIIF’s average cost to merely Rs 183.7 per share, increasing its total shareholding to 2.04 crore equity shares.

Divestment Process and Returns

The initial divestment involved NIIF selling 26.34 lakh shares through the Offer for Sale at the upper price band of Rs 321, amounting to Rs 84.55 crore in proceeds. Subsequently, on November 13, the fund offloaded the remaining 1.74 crore shares via block transactions, netting an additional Rs 1,083 crore. In total, NIIF has executed a profitable exit from its investment in Ather Energy, reaping Rs 1,167.5 crore from an initial investment of Rs 374.5 crore, which translates to a remarkable 3.1X return.

Ather Energy’s Current Position in the Market

Now listed, Ather Energy counts Hero MotoCorp and Singapore’s GIC among its key shareholders. The exit of NIIF comes on the heels of Tiger Global’s complete withdrawal earlier this week, wherein the US investor reported earnings of Rs 1,216.8 crore from an original investment of Rs 75.23 crore, yielding an astonishing 16.2X return.

NIIF’s Broader Investment Strategy

According to NIIF’s portfolio disclosures, the fund has also made investments in various other companies, including Licious, Acko Technology, GreenCell Mobility, and Manipal Hospitals, among several others.