2024-07-29 06:15:46
New Delhi: The IPO of electric two-wheeler maker Ola will open for general investors from August 2 next week. After the launch of this IPO, the valuation of the company will be between $4.2 billion and $4.4 billion. Investors can bid in it till August 6. Ola founder Bhavish Aggarwal will sell 37.9 million shares in the IPO, which is about 20% less than estimated in the draft IPO prospectus. Ola’s expected valuation is about 18.5% to 22% lower than its previous funding round in September. It was led by Singaporean investment firm Temasek and valued the country’s largest e-scooter manufacturer at $5.4 billion. When this company comes to the stock market next month, it will be one of the biggest IPOs in the country this year.
IPOs Next Week: 8 IPOs and 11 listings… There is going to be a lot of excitement in the market next week
The company is currently in loss
Ola is still running in losses. It has gained 46% market share in e-scooters in three years since its inception. The Bhavish Aggarwal-led electric vehicle firm hopes to raise fresh capital of Rs 5500 crore through IPO. Apart from this, the company will also issue shares through Offer-for-Sale (OFS).
The target was to set a valuation of $6 to $7 billion
Ola Electric initially targeted a valuation of $6-7 billion but later lowered it. According to its draft red herring prospectus filed in December, the company is facilitating an OFS of 9.5 crore shares.
Electric two-wheeler dominates the market
Electric two-wheeler companies are dominating the two-wheeler market these days. Their sales have increased by more than 33 percent in the year 2023-24. In the last financial year, every third electric two-wheeler was from Ola Electric. The company sold more than 3 lakh electric two-wheelers in FY 24. This is more than double compared to last year.