In just three years, the National Investment and Infrastructure Fund (NIIF) has nearly entirely cashed out of electric two-wheeler manufacturer Ather Energy, taking home a substantial 3X+ gain.

Key Highlights

• NIIF’s exit from Ather tripled its initial ₹375 crore investment, generating an impressive ₹1,167 crore return.
• The investment exit underscores strong returns in India’s expanding EV ecosystem, boosting investor confidence significantly.

According to Ather's red herring prospectus, NIIF invested Rs 374.5 crore in the Bengaluru-based EV manufacturer's Series E round in 2022. At an issue price of Rs 48,926 per share, the fund purchased 76,546 preference shares.

Ather had a pre-IPO restructuring prior to going public, giving preference owners bonus shares in a ratio of 1:261 in addition to a bonus preferential allotment. As a result, NIIF's average cost per share dropped dramatically to just Rs 183.7, increasing its total holding to 2.04 crore equity shares.

Through the Offer for Sale, NIIF first sold 26.34 lakh shares at the higher price range of Rs 321, making Rs 84.55 crore. On November 13, it made an additional Rs 1,083 crore by selling the remaining 1.74 crore shares through block agreements. This effectively completes the fund's wager on Ather.

With a 3.1X return on its actual investment, NIIF has taken home a total of Rs 1,167.5 crore from an original check for Rs 374.5 crore.

Hero MotoCorp and Singapore's GIC are two of Ather's biggest shareholders; the firm is currently listed.

NIIF's withdrawal comes after Tiger Global's full withdrawal earlier this week, in which the US investor earned an astounding 16.2X return of Rs 1,216.8 crore over its initial investment of Rs 75.23 crore.

The fund has supported businesses like Licious, Acko Technology, GreenCell Mobility, and Manipal Hospitals, among others, according to NIIF's portfolio reports.