National Investment and Infrastructure Fund plans to increase its stake in the two-wheeler electric manufacturing firm, Ather Energy. Entrackr reported. The Competition Commission of India approved the NIIF’s proposal under the green channel route. This route allows the company to self-declare its deal or acquisition as compiling with the competition laws. The India-Japan fund aims to buy Ather’s series G compulsorily convertible preference shares.
The India-Japan Fund focuses on environmental challenges like low-carbon emission strategies and promotes Japanese investment in India. This plan to buy an additional stake in the EV firm aims to strengthen IJF’s position in the two-wheeler electric vehicle market while providing technology-led last-mile transport vehicles and clean mobility transport solutions. Inc42 reported. The firm intends to hold an Initial Public Offering round worth Rs 4,500 crore. The Initial Public Offering will be a mix of fresh issues and offers for sale. Ather Energy intends to reach a valuation of 2.5 billion for its initial public offerings.
The EV firm secured 71 million USD at a post-money valuation of 1.3 billion USD from NIIF and joined the unicorn club in June. The company also secured Rs 60 crore in its debt funding round from Innoven Capital via non-convertible debentures. Ather Energy offers two-wheeler EV solutions and earns revenue from subscription-based after-sale services. The company previously announced its plans to raise Rs 4,000 crore from an IPO round with the participation of existing investors. After this round, Hero Motocorp became the largest external stakeholder with 40.9 percent of the company’s stake. The EV startup competes with other EV manufacturing companies including Ola Electric, and Gogoro.
The Bengaluru startup plans to launch its third manufacturing facility in Maharashtra. The company will mainly focus on the creation of battery packs and electric scooters. The EV firm has already expanded its services to Nepal and Sri Lanka. Ather Energy posted a 2 percent decrease in its operational revenue to Rs 1,753 crore in FY24. However, the company reported a 22.5 percent increase in net loss to Rs 1,059.7 crore in FY24. The development came after Ather Energy geared up to file its DRHP with the SEBI market regulator. Ather is in fourth position in the EV market after Ola Electric, TVS Motor, and Bajaj Auto.
Conclusion:
The CCIF approved the deal under the green channel route. The Competition Commission of India approved the proposal of NIIF to buy an additional stake in the two-wheeler electric vehicle manufacturing firm Ather Energy. The IJF plans to buy the series G CCPs in Ather Energy and strengthen its presence in the EV market. The company previously reported its plans to file DHRP papers for its IPO to raise Rs 4,000 crore at a valuation of 2.2 billion. The EV firm plans to file approval for its Initial public offering from the Security Exchange Board of India. The EV manufacturer has raised around 502 million USD across all its funding rounds since its inception.
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