Ola Electric Plans IPO at $4 Billion Valuation, Lower Than Earlier Estimates
- ByStartupStory | July 17, 2024
Ola Electric is gearing up to launch its highly anticipated initial public offering (IPO) in the coming weeks, setting its sights on a valuation of approximately $4 billion. This figure marks a notable reduction from its earlier target of $5.5 billion, according to sources familiar with the matter.
The Economic Times reported that the final pricing for the IPO will be determined following discussions between CEO Bhavish Aggarwal and key stakeholders, including bankers and investors. Sources indicated that the company’s founder has agreed to a 25-27% discount on its last-round pricing.
In December 2023, Ola Electric filed its draft red herring prospectus with SEBI, outlining plans to raise Rs 5,500 crore through a combination of fresh share issuances and an offer for sale. Initially eyeing a valuation between $6-7 billion, the electric vehicle (EV) maker has since adjusted its target amid market conditions.
“Notwithstanding market fluctuations, we remain committed to delivering sustainable mobility solutions,” a spokesperson for Ola Electric affirmed.
Backed by SoftBank, Ola Electric is poised to become the first EV maker in India to debut on the public market. Recently, the company secured $50 million from EvolutionX Debt Capital, bolstering its financial standing ahead of the IPO. It faces competition from Ather Energy, another leading player in the Indian EV sector, which also plans to go public after converting into a public company in June.
Ola Electric, a subsidiary of India’s prominent ride-hailing platform Ola, has emerged as the largest electric two-wheeler manufacturer in the country. Despite recent valuation adjustments, industry analysts remain optimistic about the company’s future prospects in the burgeoning EV market.
“Investors continue to see strong potential in Ola Electric’s innovative approach to sustainable urban mobility,” noted an industry expert familiar with the company’s operations.
The IPO launch is expected to provide further clarity on investor sentiment towards the EV sector, which has seen significant interest amid growing environmental awareness and governmental support for electric mobility initiatives.
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