Electric two-wheeler maker Ola Electric will open its initial public offering (IPO) for retail subscription on August 2, the company said in a filing with the Securities and Exchange Board of India (SEBI) on July 27. The public offering is likely to value the company between $4.2 billion and $4.4 billion.
Ola Electric IPO will close for retail subscriptions on August 6, the final IPO prospectus filing showed. The offering will open for institutional investors a day earlier on August 1.
The Softbank-backed company’s founder Bhavish Aggarwal will offload 37.9 million shares in the IPO, the documents disclosed. The firm’s investors AlphaWave, Alpine, DIG Investment, Matrix, and others will also be selling 47.89 million shares via the OFS as per the draft filing with the regulator.
Ola is expecting a lower valuation than in its last funding round in September led by Singapore’s investment firm Temasek, which valued it at $5.4 billion. Ola's expected valuation is about 18.5 per cent to 22 per cent lower than in its last funding round in September, Reuters reported.
Ola Electric was initially aiming for a $6-7 billion valuation but has since tempered its expectations. According to its draft red herring prospectus filed in December, the company is facilitating an OFS of 95.2 million shares.
The company filed its draft red herring prospectus (DRHP) with SEBI on December 22, 2023. Kotak Mahindra Capital, Goldman Sachs, Axis Capital, ICICI Securities, BofA Securities, Citi, BoB Caps and SBI Caps are the investment banks working on the deal. The company counsel is the law firm firm Cyril Amarchand Mangaldas.
The company’s stock market debut next month will be one of India’s biggest IPOs this year.
The loss-making firm has gained a 46 percent market share in e-scooters segment and has slashed its sales goals last year.
The Bhavish Aggarwal-led electric vehicle firm is expected to raise Rs 5,500 crore in fresh capital via the IPO, apart from the offer-for-sale (OFS) component.
Markets regulator SEBI gave its approval for the IPO last month. This would be the first by an EV startup in India and will be among the biggest new-age IPOs in 2024.