The Competition Commission of India has approved the proposal of the National Investment and Infrastructure Fund (NIIF) to acquire an additional stake in Ather Energy.
The deal was approved by the competition watchdog under the green channel route.
“The acquirer (India-Japan Fund) proposes to acquire certain Series G mandatorily convertible preferred shares of Ather,” the regulator said in an order.
The India-Japan Fund (IJF) is a fund managed by the NIIF. The fund focuses on investing in environmental sustainability and low-carbon strategies, as well as promoting investments by Japanese companies in India.
The transaction will help IJF advance its objectives by creating value for the broader market for electric two-wheelers, clean mobility transportation solutions and technology-driven last-mile transportation vehicles, it added.
Ather is engaged in the business of designing and developing electric scooters, while the India-Japan Fund (IJF) is a Sebi-registered alternative investment fund.
It focuses on investing in environmental sustainability and low-carbon strategies and aims to enhance Japanese investments in India.
The fund represents a strategic and economic partnership between the governments of Japan and India.
“The proposed transaction does not give rise to any horizontal, vertical or complementary overlap.
“…the transaction does not require the Commission to define any relevant market as it is unlikely to cause any appreciable adverse effect on competition,” the Competition Commission of India (CCI) said.
The combination is therefore reported under the green channel.
Under this route, a transaction that does not pose any risk of an appreciable adverse effect on competition is deemed to be approved upon notification to the fair trade regulator.
Last month, Bengaluru-based Ather Energy became a unicorn after closing a Rs 600 crore ($71 million) funding from its existing investor NIIF.
Following the funding, Ather has become the country’s fourth unicorn this year and the second in the mobility sector. NIIF first invested in electric scooter maker Ather in May 2022.
In July this year, Ather Energy saw its loss widen to over 22 per cent to Rs 1,059 crore in fiscal 2024, even as its revenue remained stable during the same period.
The company’s revenue for FY24 stood at Rs 1,789 crore, up from Rs 1,783 crore in the previous fiscal. The Hero MotoCorp-backed electric scooter maker’s loss stood at Rs 864 crore a year ago.
In June, Ather Energy transformed itself into a public limited company as part of its plans to go public in the near future.
Ather competes with the likes of Ola Electric Mobility, TVS and Bajaj in the electric scooter segment.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: September 8, 2024 | 19:54 IS
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