Government-backed National Investment and Infrastructure Fund (NIIF) has offered to sell shares in Ather Energy Ltd. via large deals for Rs 551 crore.
The firm will offer nearly 89 lakh shares, or 2.34% equity, at Rs 620 apiece, a 1.4% discount to Wednesday's closing price, according to a termsheet.
NIIF held a 4.67% stake as of September, currently valued at Rs 1,118 crore. An affiliate, India Japan Fund, owns another 5.91%.
HSBC Securities and Axis Capital are the merchant bankers to the deal.
The NIIF was set up to attract long-term capital for infrastructure development in India. It invests in commercially viable projects, both greenfield and brownfield, and manages multiple funds that cater to different sectors like sustainable infrastructure, private equity, and climate investments.
NIIF is managed by National Investment and Infrastructure Fund Ltd. and operates as a collaborative investment platform for international and Indian investors.
Ather Energy is a Bengaluru-based electric two-wheeler maker that competes with the likes of Ola Electric Mobility Ltd., TVS Motor Ltd. and Bajaj Auto Ltd.
The company jumped to third spot with 17.2% market share in September compared to 14.3% in the same month last year. Ather continued to gain market share with a strong network base, superior product quality and better after-sales services.
The company's loss narrowed in the September quarter to Rs 154 crore, from Rs 197 crore last year. Revenue rose 54% to Rs 900 crore. On an operating level, the company was in the loss.
Ather Energy shares settled 4.7% lower at Rs 629 apiece on the BSE, ahead of the news, compared to a 0.7% advance in the benchmark Nifty 50. The stock has risen 108% since its debut on Dalal Street in May.
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