Bhavish Aggarwal-led Ola Electric is expected to launch its widely-anticipated initial public offering as early as in the first fortnight of August.
According to a report in Moneycontrol, through the proposed listing, the Indian EV two-wheeler backed by Japanese investor Softbank is looking to raise around $740 million via a combination of a fresh issue and an offer for sale, targeting a post-money valuation between $4-4.25 billion. A person in the know told the news site that the targeted valuation was derived to provide an opportunity for investors to generate returns.
Ola Electric received approval from the Securities and Exchange Board of India (SEBI) last month to launch its Rs 7,250-crore IPO. The draft red herring prospectus (DRHP) for this IPO was submitted to Sebi on December 22, 2023.
The IPO is likely to include a fresh issue of Rs 5,500 crore and an offer for sale (OFS) of Rs 1,750 crore, totalling Rs 7,250 crore. The DRHP stated that existing shareholders were set to sell 95.19 million shares in the OFS. Founder Bhavish Aggarwal plans to sell 47.3 million shares, with initial investors like AlphaWave, Alpine, DIG Investment, Matrix, and others collectively selling 47.89 million shares.
The Bengaluru-based company is eyeing a $6 billion valuation through the public offering. Ola Electric will use the funds raised from the IPO to establish the Ola Gigafactory initiative, aiming for a 100 GWh capacity for battery production on a large scale, for the manufacturing of electric vehicles, batteries, and other parts.