Ather exit enables NIIF to turn Rs 375 Cr into Rs 1,167 Cr in just 3 years

National Investment and Infrastructure Fund (NIIF) has almost completely cashed out of electric two-wheeler maker Ather Energy, and it’s walking away with a handsome 3X-plus return in just three years.

As per Ather’s red herring prospectus, NIIF had backed the Bengaluru-based EV maker in 2022, investing Rs 374.5 crore during its Series E round. The fund picked up 76,546 preference shares at an issue price of Rs 48,926 per share.

Ahead of Ather’s public listing, the company went through a pre-IPO restructuring, issuing bonus shares in the ratio of 1:261 to preference shareholders along with a bonus preferential allotment. This sharply reduced NIIF’s average cost to just Rs 183.7 per share, taking its total holding to 2.04 crore equity shares.

NIIF first offloaded 26.34 lakh shares via the Offer for Sale at the upper price band of Rs 321, pocketing Rs 84.55 crore. It then sold the remaining 1.74 crore shares on November 13 through block deals, raking in another Rs 1,083 crore. With this, the fund has effectively wrapped up its Ather bet.

In total, NIIF has walked away with Rs 1,167.5 crore, against an initial cheque of Rs 374.5 crore, with a 3.1X return on its actual investment.

Ather, now a listed company, counts Hero MotoCorp and Singapore’s GIC among its largest shareholders.

NIIF’s exit follows Tiger Global’s complete pull-out earlier this week, where the US investor made Rs 1,216.8 crore against its original investment of Rs 75.23 crore, delivering an eye-popping 16.2X return.

According to NIIF’s portfolio disclosures, the fund has backed companies such as Licious, Acko Technology, GreenCell Mobility, and Manipal Hospitals, among others.