CCI Greenlights NIIF’s Proposal To Pick Up Additional Stake In IPO-Bound Ather Energy

CCI Greenlights NIIF’s Proposal To Pick Up Additional Stake In IPO-Bound 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.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

CCI Greenlights NIIF’s Proposal To Pick Up Additional Stake In IPO-Bound Ather Energy-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

CCI Greenlights NIIF’s Proposal To Pick Up Additional Stake In IPO-Bound Ather Energy-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

CCI Greenlights NIIF’s Proposal To Pick Up Additional Stake In IPO-Bound Ather Energy-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

CCI Greenlights NIIF’s Proposal To Pick Up Additional Stake In IPO-Bound Ather Energy-Inc42 Media
CCI Greenlights NIIF’s Proposal To Pick Up Additional Stake In IPO-Bound Ather Energy-Inc42 Media
You’re in Good company