Ola Electric may set valuation at around $4.5 billion for IPO: Report

Ola Electric's upcoming IPO to value company at $4.5 billion, 16-17% lower than last private equity round.

Ola Electric is likely to value the company at around $4.5 billion for its upcoming initial public offering (IPO), it was reported. Citing people in the know, Moneycontrol reported that the valuation is around 16-17% lower than at its last private equity round in which the SoftBank-backed Indian e-scooter maker was valued at around $5.4 billion.

Ola Electric IPO: Ola Electric received official approval from market regulator Securities Exchange Board of India (SEBI) for its initial public offering.

This means that Ola Electric will join startups like Mamaearth and GoDigit that went for an IPO with a lower valuation than what they secured from their last private equity funding rounds. Earlier it was reported that Ola Electric received official approval from market regulator Securities Exchange Board of India (SEBI) for its initial public offering through which the company is looking to raise ₹7,250 crore. As per Sebi, the IPO for a fresh issue of ₹5,500 crore and Offer for Sale (OFS) of ₹1,750 crore has been approved.

Earlier it was reported that Ola Electric roped in Kotak Mahindra Capital and Goldman Sachs for an IPO in which the company’s founder Bhavish Aggarwal will be selling 47.3 million shares. Other investors- AlphaWave, Alpine, DIG Investment, Matrix- will also be selling 47.89 million shares via the Offer for Sale.

Net proceeds from the IPO will be used by the company to fufill capital expenditure, repay debts and for research and development (R&D). Ola Electric will use around ₹1,226 crore for capex and ₹800 crore to repay debt.