Ola Electric lowered IPO price because of this reason, CEO Bhavish Aggarwal says

Ola Electric's ₹6,146 crore IPO, the largest so far this years, is now at a 25% discount to company’s previous valuation of $5.4 billion.

Ola Electric founder and chief executive Bhavish Aggarwal said the company attempted to make its IPO more attractive for investors by lowering the issue's valuation compared with its last private round. The ₹6,146 crore IPO, the largest so far this years, is now at a 25% discount to Ola Electric’s previous valuation of $5.4 billion.

Ola Electric IPO: Ola Electric CMD Bhavish Aggarwal addresses the media during the announcement of the company's forthcoming initial public offering (IPO), in Mumbai. (PTI)

Bhavish Aggarwal told Economic Times, “We are four-five years old and have scaled significantly. I wanted to make sure we price it attractively for the entire investor community in India. It's a journey of significance for the country — we're doing EVs, cells, India manufacturing, cutting-edge manufacturing. Hence, we represent a lot of themes that the future of the Indian economy is built on. The response from investors has been very encouraging.”

Talking about his journey as an entrepreneur, Bhavish Aggarwal told the outlet that is it not about short-term value creation. He said, “It is about building the right things for the long term. With Ola Electric, it is a very young company … we have scaled it up significantly. Our revenues were ₹5,300 crore last year and it continues to grow significantly. So, we are on a very strong growth stretch with a very large potential total addressable market in automotive.”