HOla Street! EV IPO set to ride in at lower price tag
Ola Electric is expected to launch its public offering for subscription in the next few weeks at a discounted valuation of around $4 billion, a decrease of about a fourth from its last private funding round, multiple people aware of the details said. In September 2023, Ola Electric had snagged a value of $5.4 billion when it raised $140 million in a round led by Singapore's Temasek.
The proposed listing will be among the largest new-economy IPOs this year, signalling a revival of public market debuts by technology-first companies. Ecommerce firm FirstCry is gearing up to launch its IPO soon while Swiggy has confidentially filed its draft papers with the markets regulator.
The Bhavish Aggarwal-led electric vehicle firm is expected to raise ₹5,500 crore in fresh capital via the IPO, apart from the offer-for-sale (OFS) component. The current discussions on the $4 billion valuation are based on conversations with bankers and investors during the company's roadshows, according to sources.
«The valuation expectation has undergone readjustment since the EV major first filed its draft IPO papers. The company has agreed to a discount compared to its last round pricing,» a person aware of the matter said.
Ola Electric was initially aiming for a $6-7 billion valuation but has since tempered its expectations. According to the draft red herring prospectus filed in December, it is facilitating an OFS of 95.2 million shares.
«Going forward, the company sees room for growth. It is looking to price the IPO in an attractive
