Ola Electric likely to hit capital market in early 2024
The initial offering is expected to be a mix of fresh issue of shares as well as offer-of-sale by existing investors.
NEW DELHI: Ola Electric, country’s largest electric two-wheeler seller, is said to be in talks with financial institutions to make its market debut by launching what can be one of the largest initial public offerings (IPOs) of recent times.
According to reports, the Softbank-backed company is eying to hit the public market early 2024. The company is believed to be in talks with Kotak, Goldman Sachs and other financial firms as banking partners for the IPO. Some reports suggest that Ola Electric may eye a pre-listing valuation of as high as $10 billion and would raise around $1 billion through the IPO. The initial offering is expected to be a mix of fresh issue of shares as well as offer-of-sale by existing investors.
It increased interest to go public comes as the firm is reported to have raised $300 million in a latest funding round at a valuation of $6 billion. While the electric vehicle maker hasn’t disclosed this funding, it was last valued at $5billion in 2022 when it had raised $200 million from Tekne Private Ventures, Alpine Opportunity Fund, and Edelweiss among others.
Ola Electric continues to lead the electric two-wheeler market. As per Vahan data, its vehicle registrations stood highest among EV makers at 21,957 units. Going forward, the company has aggressive expansion plans, both in terms of new launches and capacity expansion. Bhavish Aggarwal, founder and CEO had said that Ola Electric was expecting its two-wheeler EV business to turn profitable in 2023. The company had previously said that it plans to launch more electric two-wheeler models in 2023 and 2024, including a mass market scooter and a mass market motorcycle.
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