Ola Electric
Ola Electric is anticipated to value the company at roughly $4.5 billion for its forthcoming initial public offering (IPO), as reported by Moneycontrol, citing sources familiar with the matter. This valuation represents a decline of approximately 16-17% from the $5.4 billion valuation achieved in its last private equity round, which included investment from SoftBank in the Indian e-scooter manufacturer.
As a result, Ola Electric will join the ranks of startups like Mamaearth and GoDigit that have pursued an IPO at a lower valuation than their previous private equity funding rounds. Prior reports indicated that Ola Electric received official approval from the Securities Exchange Board of India (SEBI) for its IPO, through which the company aims to raise ₹7,250 crore. SEBI has approved the IPO, which consists of a fresh issue of ₹5,500 crore and an Offer for Sale (OFS) of ₹1,750 crore.
Earlier, it was reported that Ola Electric engaged Kotak Mahindra Capital and Goldman Sachs to manage the IPO, in which the company’s founder, Bhavish Aggarwal, will be selling 47.3 million shares. Other investors, including AlphaWave, Alpine, DIG Investment, and Matrix, will also be selling 47.89 million shares via the OFS.
The net proceeds from the IPO will be utilized by the company for various purposes, including capital expenditure, debt repayment, and research and development (R&D). Specifically, Ola Electric plans to allocate around ₹1,226 crore for capital expenditure, ₹800 crore to repay existing debt, and the remainder for R&D initiatives. This strategic allocation is intended to bolster the company’s growth and innovation capabilities in the competitive electric vehicle market.
