Ola Electric Prepares For IPO, Aims For $ 8 Bn Valuation
Ola Electric, an electric vehicle (EV) manufacturer in the space of electric scooters, is preparing for an initial public offering (IPO). This marks the first IPO by an Indian automaker in over two decades since Maruti Suzuki in 2003 and is slated for conclusion in the fiscal year 2024.
With a target to secure between USD 700 million and USD 800 million, Ola Electric aims for a valuation ranging from USD 7 billion to USD 8 billion through the IPO.
Kotak Mahindra Bank, Bank of America, Citibank, and Goldman Sachs are assisting in the management of this public offering, which includes both new equity and offers for sale by existing investors. Backers such as Temasek from Singapore and SoftBank from Japan contribute to the company's financial stability.
In recent developments, Ola Electric successfully raised Rs 3,200 crore, primarily allocated to the development of its electric vehicle manufacturing and battery units at a state-of-the-art gigafactory in Tamil Nadu. Anticipated to commence operations in early 2024, this facility holds strategic importance for Ola Electric's continued growth.
Since introducing its first electric scooter in 2021, the company has transitioned from a cab aggregator to a leading electric vehicle manufacturer under the leadership of Bhavish Aggarwal, experiencing significant growth in production and sales. The firm has also unveiled other models such as Ola S1X, S1 Pro, and S1 Air.
The firm posted a net loss of Rs 1,472 crore in FY23. Additionally, it faced obstacles such as customer-reported problems on social media and safety concerns that resulted in a voluntary recall of 1,441 vehicles.
However, the company has a considerable market share in the Indian electric vehicle market, owed to its innovations and efforts in the face of industry challenges.
