NIIF Sells 2.28% Stake in Ather Energy for ₹541 Crore

It’s been an interesting week in the Indian EV world, especially with a deal that has everyone raising an eyebrow — but in a good way. The National Investment and Infrastructure Fund (NIIF) has sold 2.28% of its stake in Ather Energy for a neat ₹541 crore, and while that might sound like another routine block deal, the timing and the players involved make it far more meaningful.

If you’ve followed Ather’s journey over the years — from being a quirky Bengaluru startup to becoming one of India’s most admired two-wheeler EV brands — this development honestly feels like one of those strategic milestones where everyone quietly recalibrates their positions.

A Breakdown of the Big Deal

On 13th November 2025, NIIF quietly sold 87 lakh shares of Ather at an average price of around ₹622 a piece. That’s a fairly confident valuation, especially considering how unpredictable the EV space can be.

Before this trade, NIIF held roughly 4.67% in Ather. After the deal? Their stake is down to about 2.39% — still in the game, but clearly not in the “anchor investor” category anymore.

To be fair, this isn’t some dramatic exit. If anything, it feels more like NIIF saying, “Hey, we’ve made a solid return — let’s unlock some capital and balance our portfolio.”

Big-Name Buyers Jumped In — And That’s the More Interesting Part

What really caught eyeballs wasn’t the selling … but the buying. Several heavyweight institutions didn’t waste a second to grab a slice of Ather:

• Motilal Oswal Mutual Fund scooped up shares worth ~₹150 crore
• Invesco Mutual Fund picked up about ₹120 crore
• Param Capital (Mukul Agrawal) bought nearly ₹100 crore worth
• Even Société Générale from France threw in close to ₹62 crore

Plus, investors from Edelweiss MF and WhiteOak were in the queue too.

If this doesn’t signal high institutional confidence, I’m not sure what does. A dozen serious investors don’t just rush into a stock unless they believe the company’s next chapter could be worth watching closely.

Why NIIF Might Be Cashing Out (Partially)

There’s always speculation when a sovereign fund trims a stake, but in Ather’s case, the move feels pretty logical:

1. Ather is finally showing financial discipline

In the September quarter, the company reported revenue of ₹898.9 crore — a massive jump — and more importantly, its losses shrank noticeably. Ather has spent years in “invest, expand, repeat” mode, and honestly, it’s good to finally see the numbers reflecting that hustle.

2. NIIF probably wants to rotate capital

Funds like NIIF don’t stay locked into growing companies forever. They nurture, they wait for the inflexion point … and then they take some profits. It’s a familiar pattern.

3. It’s a seller’s market right now

With multiple institutional buyers lining up, this was probably the ideal moment for NIIF to reduce exposure without spooking the market.

What This Means for Ather Energy

Let’s get one thing out of the way: this is not a negative signal for Ather. In fact, it’s almost the opposite.

a) More institutional confidence = healthier long-term outlook

A clutch of reputed funds actively buying shares shows they see Ather not just as a cool EV brand, but as a company that could dominate the electric two-wheeler space in the coming decade.

b) Shift in investor base could bring more discipline

With mutual funds and global banks coming in, expectations usually rise — especially around governance, margins, and execution.

c) Ather’s business model looks more believable now

For years, critics called Ather “too premium,” “too niche,” “too engineering-heavy,” and in some cases, “too expensive for India.”
Yet here they are — gradually inching toward profitability while staying true to their engineering-first philosophy. That’s rare.

Why This Exit Actually Makes Sense Right Now

The timing feels perfect for all sides:

• Ather’s revenues are finally in the right place
• Losses are narrowing at a pace that actually makes analysts sit up
• The EV two-wheeler market is stabilising after a chaotic couple of years
• Big players like TVS and Ola are pushing the category forward, expanding awareness
• The charging infra ecosystem is stronger, thanks in part to Ather itself

If you look at it from NIIF’s perspective, this isn’t a retreat. It’s them saying, “We came, we backed, the company grew, we made money — and we’ll still hang around for the long-term upside.”

The Road Ahead: Far From Smooth, But Definitely Interesting

Of course, this isn’t some fairy-tale moment for Ather either. The challenges are still very real:

• EV hardware continues to be a brutally cash-intensive business
• Competition from TVS iQube, Bajaj Chetak, and Ola S1 is only getting fiercer
• Raw material expenses and battery imports keep messing with margins
• And honestly, policy changes in the EV sector can feel like a coin toss at times

Still, Ather has one thing working strongly in its favour: brand loyalty. People who buy Ather scooters don’t just buy them … they swear by them. And that sort of emotional connect isn’t easy to replicate, even with aggressive pricing.

Final Thoughts: A Mature, Strategic Move — Not a Red Flag

If you zoom out, this stake sale feels like one of those “grown-up” moments for Ather Energy. The company has moved past the scrappy startup phase. It’s no longer the “new shiny EV kid” — it’s a serious business with serious investors.

NIIF trimming its stake is just part of the natural evolution of a high-growth company entering its next stage.

And with so many big-league buyers stepping in eagerly, it’s safe to say: Ather’s story is far from slowing down. If anything, the plot is getting more interesting.

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