Internet Fund III Pte Ltd, associated with Tiger Global Management LLC, has completely divested its stake in Ather Energy through open market transactions. The fund sold its entire holding of 1,93,60,832 shares, representing a significant portion of Ather Energy's share capital.

Key Details of the Transaction

Impact and Implications

The sale marks a complete exit for Internet Fund III Pte Ltd from Ather Energy. This move could potentially signal a shift in the fund's investment strategy or its assessment of Ather Energy's future prospects.

Regulatory Compliance

The disclosure of this transaction was made in accordance with SEBI takeover regulations, demonstrating adherence to regulatory requirements for significant shareholding changes.

Ather Energy's Capital Structure

This transaction highlights the dynamic nature of institutional investments in the electric vehicle sector, which has been gaining significant attention in recent years. Ather Energy, known for its electric scooters, continues to be a player in India's growing EV market, despite this change in its investor base.

Ather Energy , a prominent player in the electric vehicle market, experienced a significant stock price movement as its six-month shareholder lock-in period came to an end. The expiration of this period has made 16.23 crore shares, representing 44% of the company's outstanding equity, eligible for trading.

Lock-In Expiry Impact

The end of the lock-in period resulted in an 11% decline in Ather Energy's share price. However, it's important to note that while these shares are now eligible for trading, there's no guarantee they will be sold. By the end of the trading day, the stock had partially recovered, trading 6.4% lower at ₹624.30.

Key Details

Shareholding Pattern

The company's shareholding structure has seen some changes in recent months:

The promoter shareholding has decreased slightly from June to September, while institutional investors hold significant stakes in the company.

Market Implications

The expiration of the lock-in period is a significant event for Ather Energy and its investors. It introduces a potential increase in the supply of tradable shares, which could impact the stock's liquidity and price dynamics in the short term. However, the partial recovery in the stock price by the end of the trading day suggests that investor confidence remains relatively strong.

Despite the day's decline, it's worth noting that Ather Energy's stock has shown robust performance year-to-date, with a 106% gain. This indicates that the company has been well-received by the market since its listing, likely due to the growing interest in the electric vehicle sector in India.

Investors and market watchers will be keenly observing how the newly tradable shares impact the stock's performance in the coming days and weeks. The actions of major shareholders, particularly institutional investors, could provide insights into the market's long-term outlook on Ather Energy and the broader electric vehicle industry in India.