A notable ownership transition unfolded in Ather Energy on February 11 as the National Investment and Infrastructure Fund II, backed by the Government of India and institutional investors, exited its entire 1.92 percent stake through block deals across the NSE and BSE. The exit, valued at Rs 330.6 crore, was matched by buying interest from 11 prominent domestic and global institutional investors, effectively reshaping the electric scooter maker’s shareholder composition in a single session.

The stake sale involved 73.33 lakh shares transacted at Rs 710 per share. Despite the presence of high-profile buyers, Ather Energy’s stock ended the day 1.55 percent lower at Rs 716.25 on the NSE, suggesting that the market interpreted the development as supply-driven rather than a sentiment booster.

Among the buyers, Tata AIG Life Insurance Company emerged as the largest acquirer with 13.77 lakh shares worth Rs 97.8 crore. ICICI Prudential Mutual Fund followed with purchases of 11.26 lakh shares valued at Rs 80 crore. Tata Mutual Fund, Aditya Birla Sun Life Mutual Fund, Invesco Mutual Fund, and Motilal Oswal Mutual Fund each acquired 7.04 lakh shares worth Rs 50 crore apiece. Other global participants included Morgan Stanley Asia Singapore, Goldman Sachs Bank Europe, Societe Generale, WhiteOak Capital Mutual Fund, and the Abu Dhabi Investment Authority.

This transaction marks a complete exit for NIIF II from Ather Energy, indicating that an early institutional backer has monetised its holding, while long-term asset managers and global financial institutions have increased exposure at a negotiated price.

The development is significant not only for Ather’s cap table but also for what it reveals about institutional appetite in India’s listed EV ecosystem. While early-stage infrastructure or sovereign-backed funds like NIIF may look to rotate capital after achieving valuation milestones, the incoming set of investors includes insurance, mutual funds, and global banks that typically align with medium- to long-term portfolio allocations rather than venture-style positioning.

On the same day, another block transaction impacted Sterlite Technologies. TIAA-CREF Funds’ Emerging Markets Equity Index Fund, managed by Teachers Advisors (Nuveen affiliate), sold 87.3 lakh shares, equivalent to a 1.78 percent stake, at Rs 144.81 per share for Rs 126.4 crore. The stock reacted sharply, falling 8.75 percent to Rs 143.7, indicating that markets viewed the stake sale as an overhang or near-term supply pressure.

Separately, New Berry Advisors acquired 10 lakh shares of Bodhi Tree Multimedia at Rs 7.62 per share for Rs 76.2 lakh from Team India Managers, reflecting continued churn in smaller-cap counters through negotiated trades.

The concentration of such block deals across three companies on the same day highlights an active phase of institutional portfolio rebalancing in Indian equities. In Ather’s case, the narrative is not one of distress but of transition from one category of institutional investor to another. In Sterlite’s case, the price reaction indicates that liquidity and supply factors can significantly influence mid-cap counters when large funds exit.

From a broader market lens, this pattern is increasingly visible in India’s listed growth companies, especially in new-age sectors such as electric mobility, digital media, and telecom infrastructure. Early backers monetise holdings as valuations mature, while diversified domestic institutions step in to absorb float and stabilise ownership.

For Ather Energy, the entry of multiple large domestic mutual funds and insurers may improve institutional depth in the shareholder base. For investors, this often translates into more stable trading patterns over time compared to concentrated promoter or early-investor ownership.

However, the immediate price reaction suggests that markets are sensitive to the supply side of such trades, even when buyers are high-quality institutions. The negotiated block price of Rs 710 acted as a near-term reference point for the stock, limiting upside on the day of the transaction.

In Sterlite Technologies, the sharper fall underscores how exits by global funds can pressure stocks when market depth is thinner. The absence of disclosed large buyers in that block deal likely amplified selling pressure in the open market.

Collectively, these developments underscore how block deals are increasingly shaping price action and ownership patterns in Indian equities, especially in sectors linked to infrastructure, technology, and mobility.

Large block deals by institutional investors signal active portfolio churn rather than broad market pessimism. However, they can create short-term price dislocations in affected stocks due to supply pressure.