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Ola Electric's ₹5,500 crore IPO to launch next Friday on August 2
Ola, despite still being loss-making, has a 46% market share in e-scooters, and competes with Ather Energy, TVS Motors, and Bajaj Auto.
Ola Electric is set to launch its ₹5,500 crore initial public offering (IPO) for retail investors on August 2 or Friday next week, Reuters reported, quoting the company's exchange filing, adding that the company would be valued between $4.2 billion to $4.4 billion, which is 18.5-22% lower than the last funding round in September, led by Singapore-based investment firm Temasek.
The issue will go on till August 6, with founder and CEO Bhavish Aggarwal selling 37.9 million shares, which is 20% lower than estimated in the draft prospectus.
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Ola planned to offer the IPO at a lower valuation to ensure higher participation from investors, the report read.
What will the IPO's proceeds be used for?
Ola Electric will utilise the funds raised for capex, repaying debt, and research and development (R&D), according to the Draft Red Herring Prospectus (DRHP), filed in December 2023.
Ola, despite still being loss-making, has a 46% market share in e-scooters, according to an Economic Times report, which added that it slashed its sales goals last year after the government reduced some industry incentives.
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The primary competitors for Ola Electric include Ather Energy, TVS Motors, and Bajaj Auto.
Which companies are involved in facilitating the IPO?
The company's anchor book would be launched on August 1, according to a Moneycontrol report, which quoted unnamed sources. The company's listing is likely on August 9, according to the report.
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Kotak Mahindra Capital, Axis Capital, Goldman Sachs, ICICI Securities, Citi, BofA Securities, SBI Caps and BoB Caps are the investment banks working on the deal, with law firm Cyril Amarchand Mangaldas being the company counsel, according to the report.
