Ola Electric IPO: $4.4 Billion Valuation for India’s EV Giant

CONTENTS: Ola Electric IPO: $4.4 Billion Valuation

SoftBank-backed Ola Electric announced that its IPO for retail subscription will open on August 2, with the company’s valuation estimated between $4.2 billion and $4.4 billion. According to Reuters, the IPO for institutional investors will start a day earlier on August 1 and will close for retail investors on August 6.

Ola’s founder, Bhavish Aggarwal, will sell 37.9 million shares in the IPO, which is about 20 percent less than initially indicated in the draft prospectus. This expected valuation is approximately 18.5 to 22 percent lower than the $5.4 billion valuation from its last funding round in September, led by Singapore’s investment firm Temasek.

Ola IPO valuation lowered

According to sources cited by Reuters, some prominent investors are being offered Ola Electric’s IPO at the lower end of the $4.2 billion to $4.4 billion valuation range. Ola is opting for a lower valuation to attract more investors to participate in the IPO. This IPO, the first for an Indian electric vehicle (EV) maker, is one of the largest in India this year, coinciding with record highs in the country’s equities markets, which have recently surpassed Hong Kong to become the world’s fourth-largest exchange. The size of the fresh share issue for the IPO remains unchanged at ₹55 billion.

Ola Electric, which competes with TVS Motors, Bajaj Auto, and Ather Energy, plans to use the funds raised from its IPO for capital expenditures, debt repayment, and research and development (R&D). Earlier reports from Mint indicated that Ola Electric held a 50 percent market share in the first quarter of the financial year 2024-25.

With its current capacity, the company can assemble up to one million vehicles. Additionally, Ola Electric has the capability to vertically integrate the assembly of motors, batteries, and electronic EV components.