Ola Electric’s $740 Million IPO Likely in August, Targeting $4-4.25 Billion Valuation
- ByStartupStory | July 25, 2024
Bhavish Aggarwal-led Ola Electric, backed by Japanese investment giant Softbank, is set to launch its highly-anticipated initial public offering (IPO) as early as the first fortnight of August, according to multiple industry sources. This IPO marks a significant milestone for India’s domestic auto sector, being the first-ever listing by an Indian EV two-wheeler company, and is expected to encourage peers like Ather Energy to consider similar value-unlocking plans.
“The firm is looking to raise around $740 million via a combination of a fresh issue and an offer for sale and is targeting a post-money valuation between $4-4.25 billion,” one of the sources familiar with the development told Moneycontrol.
The targeted valuation aims to provide investors with an opportunity to generate returns, another person privy to the process revealed. Both individuals spoke on the condition of anonymity. When contacted, Ola Electric declined to comment.
Ola Electric filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on December 22, 2023. The IPO comprises a fresh issue of ₹5,500 crore and an offer for sale (OFS) of ₹1,750 crore, totaling ₹7,250 crore. Existing shareholders are set to sell 95.19 million shares in the OFS, with Founder Bhavish Aggarwal selling 47.3 million shares. Initial investors including AlphaWave, Alpine, DIG Investment, and Matrix will also be selling 47.89 million shares.
The proceeds from the IPO will be utilized for capital expenditure, repaying debt, and research and development (R&D), as per the DRHP.
In its last funding round in September, Ola Electric was valued at $5.4 billion, led by Singapore investment giant Temasek. On May 25, Moneycontrol reported that Ola Electric had roped in Kotak Mahindra Capital and Goldman Sachs as advisors for the IPO. Earlier, on April 19, Moneycontrol also reported that ANI Technologies, the parent company of Ola Cabs, had initiated preliminary discussions with investment banks to evaluate the potential IPO of its ride-hailing business.
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