Highlights
Tiger Global Exits Ather Energy with 16X Return
Tiger Global has completely exited its investment in Ather Energy, an electric two-wheeler manufacturer, achieving over a 16X return from its decade-long involvement. As per Ather’s draft red herring prospectus (DRHP), Tiger Global initially supported the Bengaluru-based electric vehicle startup in 2015, investing Rs 75.23 crore during the Series A funding round, acquiring 74,732 Series A preference shares at a price of Rs 10,067.4 per share. Notably, the investment firm chose not to take part in any of Ather’s later funding rounds.
Details of the Investment and Returns
In a recent restructuring effort prior to the company’s Initial Public Offering (IPO), Ather distributed bonus shares at a ratio of 1:261 to its preference shareholders, increasing Tiger Global’s total to 1.95 crore equity shares, while maintaining an average acquisition cost of only Rs 38.57 per share. The investor sold approximately 4 lakh shares through the Offer for Sale (OFS) at an upper price of Rs 321 per share, generating around Rs 12.84 crore. Earlier this week, Tiger Global divested its remaining stake of approximately 1.93 crore shares for about Rs 1,204 crore, marking a complete exit from the EV manufacturer.
Overall, Tiger Global has realised Rs 1,216.8 crore from its original investment of Rs 75.23 crore, resulting in a return of 16.2X.
Ather Energy’s Current Status
Now a publicly traded company, Ather Energy lists Hero MotoCorp and GIC among its prominent shareholders. For Tiger Global, this clean exit complements a series of strategic movements within India’s public markets. The firm has also slightly reduced its stakes in companies such as Flipkart-backed PhonePe, Dream11, and Zomato while maintaining its positions in Policybazaar, Delhivery, and Freshworks. This complete exit from Ather Energy highlights Tiger Global’s broader approach of securing gains from established investments as Indian startups evolve into listed companies, signifying a more disciplined strategy regarding liquidity in the region.
