Ola Electric, the prominent electric two-wheeler manufacturer backed by Softbank, is set to open its Initial Public Offering (IPO) for retail investors on August 2, 2024 as per the latest filing with the Securities and Exchange Board of India (SEBI) on July 27, 2024. The anticipated valuation for the company is estimated between $4.2 billion and $4.4 billion.
IPO Details and Timeline
The public offering will be available to retail investors from August 2, 2024 to August 6, 2024
Institutional investors, however, will get a head start, with the IPO opening for them on August 1. This staggered approach aims to balance the interest and participation from different investor categories.
Share Sale by Key Stakeholders
Bhavish Aggarwal, the founder of Ola Electric, is set to offload 37.9 million shares as part of the IPO. In addition to this, significant investors such as AlphaWave, Alpine, DIG Investment, and Matrix will collectively sell 47.89 million shares through an Offer for Sale (OFS), according to the draft filing submitted to SEBI.
Valuation Insights
Ola Electric’s expected valuation of $4.2 billion to $4.4 billion marks a decrease from its previous valuation of $5.4 billion during the last funding round led by Temasek in September. This new valuation range indicates an 18.5% to 22% reduction from the earlier figure.
Market Context
This IPO presents a unique opportunity for retail investors to be part of Ola Electric’s journey, particularly at a time when the electric vehicle market is gaining significant traction globally. Despite the lowered valuation, the company’s strategic market position and growth potential in the electric mobility sector remain strong draws for potential investors.
