Ola Electric to seek valuation of $10B in IPO, likely to file DRHP by next quarter
Ola Electric has begun discussions with Goldman Sachs, Kotak, Citi, and Axis Bank to help underwrite its IPO, according to a source in investment banking.
Friday May 26, 2023,
2 min Read
's plans for an initial public (IPO) offering are firming up, as the company has started discussions with investment bankers, two sources familiar with the matter told YourStory.
Till now, Goldman Sachs, Kotak, Citi, and Axis have come on board, although talks are still at a preliminary stage, a source from one of the four banks said. Cyril Amarchand Mangaldas and Shardul Amarchand Mangaldas will provide legal representation.
The IPO could see Ola Electric raise $1 billion in net proceeds, at a valuation of $10 billion, another source said.
The company is likely to file its draft red herring prospectus (DRHP) by the end of the next quarter and launch the IPO by the end of the last quarter of the current fiscal year.
Ola Electric declined to comment on this.
Proceeds from the IPO will be used to scale up operations, fund the company's battery manufacturing plant, and ramp up its scooter production. Ola Electric also hopes to expand its EV two-wheeler manufacturing capacity to 2 million per year, from 500,000 currently, according to a Business Standard report.
Ola Electric's biggest shareholders include Temasek, Softbank, Tiger Global Management, Edelweiss, Matrix Partners India, Kia Motors, and Alpha Wave Investors. Some investors have expressed an interest in offloading their stakes in the company during the IPO, one of the sources told YourStory.
News of Ola Electric's IPO was first reported by Moneycontrol and The Economic Times. The company's founder, Bhavish Aggarwal, hinted at the IPO last year, at TechSparks 2022, YourStory's annual flagship startup-tech event.
The company has secured $300 million in a funding round that values it at $6 billion, Business Standard reported earlier this week, citing merchant banking sources. Existing investor Softbank Group reportedly did not participate in the round, the report said.
Ola Electric had last raised $200 million in funding, at a valuation of $5 billion, in January last year.
The company plans to launch a line of motorcycles next year. It has a 34% market share in e-scooters, according to Vahan data.
Edited by Swetha Kannan