Ola Electric Gears Up For India’s Largest Automotive IPO By Early 2024
Just a few days after it secured $300 million in fresh funding led by a sovereign fund, Ola Electric, India’s largest electric vehicle company, is said to be in talks with financial and legal institutions to go for the much-awaited initial public offerings (IPOs) slated to be in early 2024.
Sources say it has already begun the process to prepare its draft prospectus for an IPO which will be filed latest by September to Sebi for clearance.
According to sources, the company is in talks with Kotak, Goldman Sachs, Citibank, and others as banking partners for the IPO. It has hired law firms Cyril Amarchand Mangaldas and Shardul Amarchand Mangaldas as legal advisors.
Just a few days ago, Ola Electric secured fresh funds which helped to increase its valuation from $5 billion in January 2022 to $6 billion now as part of its pre-IPO offering. If the clearances come in time, sources say the IPO could be slated for the first quarter of the calendar year 2024. An Ola spokesperson declined to comment.
Currently, founder and promoter Bhavish Aggarwal has a 40 per cent stake in Ola Electric which is expected to be diluted by 2 per cent after the fresh raising of funds from the sovereign fund.
Ola is banking on the fact that it is already the largest player in the electric two-wheeler space with a market share of 34 per cent in April and registrations of over 21,560 vehicles (actual sales will be higher) based on VAHAN data. Its closest competitor is TVS with 8,718 vehicles.