CCI Greenlights NIIF’s Proposal Up Stake In Ather Energy

SUMMARY

The deal aims to strengthen IJF's position in the electric two-wheeler market, clean mobility transport solutions, and technology-led last-mile transport vehicles

CCI approved the deal under the green channel route

The report, citing CCI’s order, outlined that the acquirer (India-Japan Fund) plans to buy certain Series G Compulsorily Convertible Preference Shares of Ather

The Competition Commission of India (CCI) has reportedly approved the National Investment and Infrastructure Fund’s (NIIF) proposal to buy an additional stake in electric two-wheeler maker Ather Energy.

As per PTI, CCI approved the deal under the green channel route.

The green channel is a fast-track approval route by the CCI, allowing companies to self-declare that their merger or acquisition complies with competition laws.

The report, citing CCI’s order, outlined that the acquirer (India-Japan Fund) plans to buy certain Series G Compulsorily Convertible Preference Shares of Ather.

Notably, the India-Japan Fund, a SEBI-registered alternative investment fund managed by NIIF, focuses on environmental sustainability, low-carbon emission strategies, and promoting Japanese investment in India.

The deal aims to strengthen IJF’s position in the electric two-wheeler market, clean mobility transport solutions, and technology-led last-mile transport vehicles, the report added.

The development comes on the sidelines of Ather Energy gearing up for its IPO, with recent reports saying that it plans to file its DRHP with SEBI for an INR 4,500 Cr IPO, comprising a mix of a fresh issue and offer for sale (OFS).

The emobility major is targeting a valuation of around $2.5 Bn for the IPO.

Not to mention, last month its counterpart Ola Electric went public and raised over INR 6,145.6 Cr in IPO at a valuation of $4 Bn. Despite this high valuation, Ola Electric made a muted market debut in brouses last month.

Last month, Arthur Energy entered the coveted unicorn club after raising INR 600 Cr ($71 Mn) from its existing investor National Investment and Infrastructure Fund (NIIF) at a post-money valuation of $1.3 Bn.

Before that, it raised debt funding of INR 60 Cr (around $7.1 Mn) via non-convertible debentures (NCDs) from InnoVen Capital. Pawan Munjal-led Hero MotoCorp is one of the leading investors in the startup, owning a 40.89% stake.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy manufactures escooters and battery packs. It also operates its own charging infrastructure. After building its market on its 450 series of escooters, the startup recently launched a family escooter series Rizta and forayed into the smart helmet category.

In June, Ather also announced setting up its third manufacturing facility in Maharashtra to manufacture escooters and battery packs. Recently, it expanded its business to Sri Lanka, marking its second overseas foray after Nepal.

On the EV scooter sales front, Ather is in the fourth position in the market, behind Ola Electric, TVS Motor, and Bajaj Auto.

Ather’s total vehicle registration in August stood at 10,873 units, growing almost 52% year-on-year (YoY).

However, like Ola Electric, Ather also continues to be a loss-making entity. Its net loss widened 22.5% to INR 1,059.7 Cr in FY24, as per the annual report of Hero MotoCorp.