Ola Electric to launch its ₹5,500cr IPO on August 2
What's the story
Ola Electric is set to open its initial public offering (IPO) for retail subscription on August 2, according to a filing with stock market regulator SEBI. The Bhavish Aggarwal-led firm aims to raise ₹5,500 crore in fresh capital through this IPO. The public offering will value the company between $4.2 billion and $4.4 billion, marking a significant event in India's IPO landscape this year.
Subscription closure
IPO to close for retail subscriptions on August 6
The IPO will close for retail subscriptions on August 6, as revealed by the final IPO prospectus filing. Institutional investors will have access to the offering a day earlier on August 1. Ola founder Bhavish Aggarwal is set to offload 37.9 million stocks in the IPO, which is around 20% lower than initially estimated in the draft IPO prospectus.
Valuation drop
Ola Electric's valuation lower than last funding round
Ola Electric's expected valuation is about 18.5% to 22% lower than its last funding round in September, led by Singapore's investment firm Temasek, which valued India's largest e-scooter maker at $5.4 billion. Despite being loss-making, Ola has managed to secure a 46% market share in e-scooters within three years of its founding. This achievement comes even after it had to reduce its sales goals last year following a reduction of industry incentives by Prime Minister Narendra Modi's government.
Revised expectations
Ola Electric revises IPO valuation and share offerings
Initially, Ola Electric was targeting a valuation of $6-7 billion for its IPO but has since revised its expectations downwards. As per its draft red herring prospectus filed in December, the company is facilitating an offer-for-sale (OFS) of 95.2 million shares.