![Ola Electric IPO likely in August; company aims to raise $740 million Ola Electric IPO likely in August; company aims to raise $740 million](https://www.indiablooms.com/finance_pic/2024/bfc0e3c529b743438a93c78659caaac5.jpg)
Ola Electric IPO likely in August; company aims to raise $740 million
Bengaluru: Ola Electric, led by Bhavish Aggarwal and backed by Japanese investment giant Softbank, is preparing to launch its highly anticipated initial public offering (IPO) as early as the first half of August, according to multiple industry sources cited by Moneycontrol.
This will be the first IPO by an Indian electric vehicle (EV) two-wheeler company, potentially setting a precedent for the domestic auto sector and encouraging other companies like Ather Energy to explore similar opportunities.
The company aims to raise around $740 million through a combination of a fresh issue and an offer for sale (OFS), targeting a post-money valuation between $4 billion and $4.25 billion, according to a source familiar with the matter.
The valuation is designed to offer investors a chance to earn returns. Both sources requested anonymity, and Ola Electric declined to comment when contacted.
Ola Electric filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on December 22, 2023.
The company had enlisted Kotak Mahindra Capital and Goldman Sachs as advisors for the IPO, Moneycontrol reported on May 25.
Earlier, ANI Technologies, the parent company of Ola Cabs, had begun preliminary discussions with investment banks about potentially launching an IPO for the ride-hailing business, Moneycontrol also reported.
In its last funding round in September, led by Singapore's Temasek, Ola Electric was valued at $5.4 billion.
According to its draft papers, the IPO will include a fresh issue of Rs 5,500 crore and an OFS of Rs 1,750 crore, totalling Rs 7,250 crore.
Existing shareholders will sell 95.19 million shares in the OFS, with founder Bhavish Aggarwal selling 47.3 million shares.
Early investors such as AlphaWave, Alpine, DIG Investment, and Matrix will also sell 47.89 million shares.
The proceeds from the IPO will be used for capital expenditure, debt repayment, and research and development (R&D).
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