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Ola Electric, India’s leading electric scooter manufacturer backed by SoftBank, is set to launch its initial public offering (IPO) next week. The company announced on Saturday that the IPO will open for retail subscription on August 2, with an expected valuation between $4.2 billion and $4.4 billion, according to sources familiar with the matter.
According to the final IPO prospectus filing, the IPO will open for institutional investors on August 1, and for retail investors on August 2, with retail subscriptions closing on August 6. Ola’s founder intends to sell 37.9 million shares in the IPO, which is about 20% less than the amount originally estimated in the draft prospectus.
Ola’s expected valuation for the IPO marks a decrease of about 18.5% to 22% from its last funding round in September, led by Singapore’s investment firm Temasek, which valued the company at $5.4 billion. According to sources with direct knowledge of the IPO planning, some marquee investors are being offered shares at the lower end of the $4.2 billion to $4.4 billion valuation range.
The IPO represents a significant milestone for India’s burgeoning electric vehicle (EV) market, marking the first public offering by an Indian EV maker. It is also one of the largest IPOs in India this year, a year that has seen the country’s equity markets reach multiple record highs and surpass Hong Kong to become the world’s fourth-largest stock exchange.
Ola Electric’s IPO includes a fresh share issue size of 55 billion rupees ($657 million), which remains unchanged from the initial plans. The funds raised will likely be used to expand Ola’s production capacity, enhance research and development, and scale its operations to meet the growing demand for electric scooters.