Shocking Exit: Top Fund Sells Major Stake in Hot EV Maker! What Investors Need to Know NOW!

Author

Akshat Lakshkar | Whalesbook News Team

Detailed Coverage:

National Investment and Infrastructure Fund (NIIF), a significant state-backed investment fund, has divested its stake in Ather Energy, a leading electric vehicle (EV) manufacturer, for INR 541.6 crore. The sale, which occurred via open-market transactions, saw NIIF offload 87.02 lakh shares at INR 622.35 per share. A diverse group of investors, including Ashoka WhiteOak ICAV, Edelweiss Mutual Fund, Ghisallo Master Fund, India Acorn ICAV, Invesco, and Motilal Oswal Mutual Fund, acquired these shares.

This transaction follows earlier reports that NIIF intended to reduce its holdings in Ather Energy and comes shortly after early investor Tiger Global exited its position, having sold its entire stake for INR 1,204 crore.

Ather Energy has been on a strong growth trajectory, recently surpassing Ola Electric in electric two-wheeler registrations and reporting a 46% increase in October registrations. Financially, the company has improved its standing, trimming its net loss by 22% to INR 154.1 crore in the second quarter of FY26, while its operating revenue surged by 54% year-on-year to INR 898.8 crore. These positive developments have fueled a nearly 57% surge in Ather's valuation over the past three months.

Impact: This news directly impacts the Indian investment landscape and the burgeoning EV sector. The stake sale by a major state-backed fund could signal a shift in investment strategy or simply profit-taking after a significant rally. It also highlights the maturing stage of Ather Energy, with early investors cashing out while the company demonstrates strong operational and financial growth. For Indian stock market investors, it provides insights into the liquidity events and investor sentiment surrounding successful EV startups, potentially influencing investment decisions in similar growth stocks. The market sentiment towards Ather Energy's future prospects remains strong, as evidenced by its recent stock performance. Impact Rating: 7/10

Difficult Terms Explained: * National Investment and Infrastructure Fund (NIIF): A quasi-sovereign wealth fund set up by the Indian government to provide long-term capital for infrastructure and other investment projects in India. * Dilute its stake: To reduce one's percentage of ownership in a company by issuing new shares or selling existing shares. * Open-market transactions: The buying and selling of securities on a stock exchange, as opposed to directly between two parties. * Merchant bankers: Financial institutions that help companies raise capital by underwriting or acting as agents in the issuance of stocks and bonds. * E2W registrations: Electric Two-Wheeler registrations, referring to the number of electric scooters and motorcycles newly registered. * Net loss: The total expenses of a company exceed its total revenue over a specific period. * Operating revenue: The income generated from a company's normal business operations, excluding interest and taxes. * YoY (Year-on-Year): A comparison of financial data from the current period to the same period in the previous year. * QoQ (Quarter-on-Quarter): A comparison of financial data from the current quarter to the previous quarter. * FY26 (Fiscal Year 2025-26): The financial year running from April 1, 2025, to March 31, 2026.