Bhavish Aggarwal does not regret taking Ola Electric public
What's the story
Ola Electric founder and Chairman Bhavish Aggarwal has said he doesn't regret taking the firm public. He made the remark a year after the electric vehicle maker's market debut. "The best companies in the world are always built in public markets," Aggarwal told Moneycontrol during an interview at Ola Electric's gigafactory in Tamil Nadu.
Market insights
Aggarwal cites examples of successful public companies
Aggarwal stressed the importance of public market scrutiny in building successful companies. He cited examples of iconic firms such as Reliance, Tata Group, Adani Group, Airtel, and global giants like Apple and Google. "The rigor comes in from public market scrutiny," he said. The comments come amid a wave of Indian start-ups considering IPOs but being wary due to market volatility and mixed responses to new-age tech listings.
IPO details
Ola Electric's IPO and stock performance
Ola Electric Mobility went public on August 9, 2024, with shares listing at ₹91.18, nearly a 20% premium over the IPO price. However, the stock has since witnessed volatility amid rising competition in the EV sector and profitability concerns.
Plan
Company has a ₹1,700cr fundraising plan
Ola Electric's stock performance has been mixed since its listing. Today, it ended trade at ₹41.35, up 0.09% from the previous close. Earlier this year, Ola Electric's board approved a ₹1,700 crore fundraising plan through non-convertible debentures (NCDs) and other eligible debt securities. This will be the company's second fundraising effort in less than a year since going public.