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HomeStartup NewsIndia's Ola Electric announces $734m IPO pricing range

India’s Ola Electric announces $734m IPO pricing range

Ola Electric, an Indian e-scooter manufacturer supported by SoftBank, announced that it will list a $734 million initial public offering (IPO) with shares priced between 72 and 76 rupees ($0.86 and $0.91). This will be the largest domestic IPO of the year.

The largest participant in a nation where the adoption of clean vehicles is still low but growing quickly is an Indian electric vehicle manufacturer, which is making its maiden initial public offering (IPO).

The company’s chairman, Bhavish Aggarwal, is heavily investing in cleaner cars and has made the statement, “Tesla is for the West and Ola for the rest,” famous. Aggarwal has previously openly condemned petrol and diesel cars.

According to a term sheet, the company, which sold its first scooter in 2021, will be valued at $4 billion following the IPO, which takes place from August 1 to August 6.

This valuation is almost 25% less than Ola’s September funding round, which was led by Temasek, an investment group based in Singapore, and valued the electric vehicle manufacturer at $5.4 billion.

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According to sources who spoke on condition of anonymity, Ola also hopes to draw investors to the stock offering, which is why the lower figure results from a correction in the valuation of international IT businesses.

A number of Indian mutual funds, Fidelity, Nomura, and Norges Bank are expected to submit bids for the IPO.

According to the term sheet, Ola would sell off its approximately $77 million interest to IPO investors and issue new shares in order to raise $657 million.

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In an advertising published in the Financial Express newspaper, the corporation revealed the pricing range, offering certain qualified employees a share discount of 7 rupees.

Aggarwal and investors, including Matrix Partners and SoftBank, will part with a portion of their holdings during the IPO.

10% of the IPO will be allocated for retail investors, according to the newspaper advertisement, with the money raised going towards capital expenditures and R&D.

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