Ola Electric IPO Plans To Kick Off With Investors Meet In Singapore And United States - Prag News
Friday, September 29, 2023
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Ola Electric IPO Plans To Kick Off With Investors Meet In Singapore And United States

Ola Electric IPO: Ola Electric is going to speed up the exercise of launching IPO (initial public offering) from next week. The company is going to hold the first round of talks with investors from Singapore and America next week to launch the IPO and get it listed on the stock exchange. Ola Electric is preparing to raise one billion dollars through IPO.

Ola Electric is the largest electric two-wheeler company in the country, which sells 30,000 e-scooters every month, which cost around $ 1600. Investors like SoftBank and Temasek have invested in the company. Before the launch of the IPO, the company wants to inform the investors about the bright future of the electric vehicle market in India. According to Reuters, Ola founder Bhavish Aggarwal will be visiting Singapore, the US and the United Kingdom for the next two weeks where he will meet with mutual fund companies such as BlackRock, Singapore Sovereign Wealth Fund GIC (GIC) and T Rowe Price.

Ola Electric can file a draft paper with the stock market regulator SEBI to bring IPO by the month of August. In Ola Electric’s IPO, along with fresh shares, shares will also be sold through offer for sale. Through offer for sale, existing investors will reduce their stake in the company in the IPO. The company is considering selling a total of 10 per cent stake.

Ola Electric is planning to launch the IPO in the fourth quarter of the current financial year 2023-24. The company can get a valuation of more than $ 5 billion through IPO. The company gets this valuation which will make it the third most valuable two-wheeler company after Bajaj Auto and Eicher Motors. And through the amount received from the IPO, the company will fund the capital expenditure.

Ola Electric has hired Bank of America, Goldman Sachs, ICICI Securities, Axis Capital and Kotak Securities as lead managers to launch the IPO. Earlier in January 2022, the company raised $200 million from investors, after which the valuation of the company was estimated at $5 billion. Ola Electric has 28 per cent market share in the electric two-wheeler space. In the last three months, the company has sold 60,735 two-wheelers. The company is planning to set up a 5 GW capacity lithium-ion cell manufacturing facility at Krishnagiri in Tamil Nadu. Under the PLI scheme, the Government of India has allotted battery cell capacity to the company to make it an advance cell. The company has announced an investment of $500 million.

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