Ola Electric, backed by SoftBank, is gearing up for its much-anticipated initial public offering (IPO) with a targeted valuation of approximately $4.5 billion, a decline from its previous valuation of $5.5 billion. Industry sources indicate this move aims to attract investors with an attractive pricing strategy amidst shifts in global tech stock valuations.
The Bhavish Aggarwal-founded firm plans to file for the IPO by next month, following recent approval from the Securities and Exchange Board of India (Sebi) to proceed with its IPO plans. Ola Electric seeks to raise Rs 7,250 crore (approximately $860 million), positioning itself as the first Indian electric vehicle company to go public.
In October last year, Ola Electric secured funding amounting to Rs 3,200 crore ($380 million) from Temasek-led investors and project debt from the State Bank of India. This funding round increased its valuation to $5.5 billion from a previous $5 billion. However, adjustments in global tech stock valuations are believed to have contributed to the subsequent valuation decline.
Founder Bhavish Aggarwal plans to sell up to 47.4 million shares, representing a 3.48% stake in the IPO. Other major selling shareholders include SoftBank Vision Fund, Tiger Global, and Matrix Partners, among others.
The IPO is seen as a strategic move by Ola Electric to capitalize on growing investor interest in the electric vehicle sector, despite the adjusted valuation. The outcome of the IPO will be closely watched as it sets a precedent for Indian EV companies entering the public markets.
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