Ola Electric Sets Eyes on Ambitious $700 Million IPO by Early 2024

Ola Electric Sets Eyes on Ambitious $700 Million IPO by Early 2024

VoM News Desk | December 12, 2023 | 12:06 AM IST | Breaking News | Follow on Google News

Ola Electric Sets Eyes on Ambitious $700 Million IPO by Early 2024 image/REUTERS

Ola Electric Sets Eyes on Ambitious $700 Million IPO by Early 2024

Ola Electric is poised to submit its Draft Red Herring Prospectus (DRHP) to SEBI by December 20, with plans to secure a substantial $700 million through its Initial Public Offering (IPO), as per reports by CNBC-TV18 on December 11.

Backed by SoftBank, the company aims for a valuation ranging between $7-8 billion by early 2024. The IPO’s proceeds are earmarked for expanding Ola Electric’s electric vehicle (EV) business and setting up a dedicated lithium-ion cell manufacturing unit.

Recent reports indicated that Ola Electric recalibrated its sales targets for 2023-2025, reducing them by over 50% and pushing back its profitability goal by a year due to decreased government incentives leading to increased e-scooter prices.

The revenue target for the current fiscal year has been revised to $591 million, a significant 60% reduction from the initial $1.55 billion.

The company underwent a pivotal transformation into a public entity on November 17, changing its name from Ola Electric Mobility Private Limited to Ola Electric Mobility Limited, a necessary step for IPO preparations.

Ola Electric enlisted Kotak Mahindra Capital and Goldman Sachs for its IPO, expected to feature a mix of primary and secondary share offerings.

In a recent funding round, Ola Electric secured ₹3,200 crore ($380 million) from investors, including Temasek and the State Bank of India (SBI).

This infusion will support the expansion of the electric vehicle business and the establishment of India’s first lithium-ion cell manufacturing facility in Tamil Nadu.

Amidst these developments, Ola Electric expanded its scooter portfolio in February 2023, introducing five new products, showcasing the company’s commitment to innovation and market expansion in the electric vehicle segment.

VoM News Desk

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