Ola Electric To Be India's First Ever EV IPO
Ola Electric, an electric vehicle (EV) manufacturer, is preparing for a major financial development: an initial public offering (IPO). It is the first IPO by an Indian automaker in over two decades since Maruti Suzuki in 2003 and is slated for the conclusion of the fiscal year 2024.
With a target to secure between USD 700 million and USD 800 million, Ola Electric aims for a valuation ranging from USD 7 billion to USD 8 billion through the IPO. Key financial institutions such as Kotak Mahindra Bank, Bank of America, Citibank, and Goldman Sachs are assisting in the management of this public offering, which includes both new equity and offers for sale by existing investors. Backers such as Temasek from Singapore and SoftBank from Japan contribute to the company's financial stability.
In recent developments, Ola Electric successfully raised Rs 3,200 crore, primarily allocated to the development of its electric vehicle manufacturing and battery units at a state-of-the-art gigafactory in Tamil Nadu. Anticipated to commence operations in early 2024, this facility holds strategic importance for Ola Electric's continued growth.
Despite a net loss of Rs 1,472 crore in FY23, Ola Electric remains a major player in India's electric two-wheeler market. Since introducing its first electric scooter in 2021, the company has transitioned from a cab aggregator to a leading electric vehicle manufacturer under the leadership of Bhavish Aggarwal, experiencing significant growth in production and sales.
However, Ola Electric faces obstacles, such as customer-reported problems on social media and safety concerns that resulted in a voluntary recall of 1,441 vehicles. The company continues to play a significant role in the Indian electric vehicle market, demonstrating perseverance and effort in the face of industry challenges.
