Ola Electric’s High-Stakes IPO Set to Launch Amid Lower Valuation

Ola Electric’s IPO will open for retail investors on August 2, 2024, with a valuation of $4.2 billion to $4.4 billion, marking a significant moment for India’s electric vehicle market.

Key Points

• Ola Electric’s IPO will open for institutional investors on August 1 and for retail subscriptions on August 2, 2024.
• The company’s IPO valuation is expected to be between $4.2 billion and $4.4 billion, down from a previous valuation of $5.4 billion.
• Ola founder Bhavish Aggarwal will sell 37.9 million shares, which is about 20% fewer than initially projected.
• This IPO is notable as the first for an Indian electric vehicle maker and comes at a time when Indian stock markets are at record highs.
• The reduced valuation aims to attract more investors and ensure robust participation in the IPO.

Ola Electric announced that its initial public offering (IPO) will open for retail subscription on August 2. The much-anticipated stock offering, backed by SoftBank, is projected to value the company between $4.2 billion and $4.4 billion. The IPO will begin for institutional investors a day earlier, on August 1, and will close for retail subscriptions on August 6.

The decision to set the valuation lower than previously estimated comes as Ola aims to boost investor interest. In a significant adjustment from its last funding round, where the company was valued at $5.4 billion by Singapore‘s Temasek, Ola’s revised valuation is about 18.5% to 22% lower. The IPO prospectus revealed that Bhavish Aggarwal, the founder of Ola, plans to offload 37.9 million shares, which is approximately 20% fewer than what was initially planned.

According to sources familiar with the matter, some prominent investors are being offered shares at the lower end of the valuation range to enhance appeal and participation. This move is part of a broader strategy to ensure a successful subscription for Ola’s stock.

This IPO marks a significant milestone as it is the first for an Indian electric vehicle manufacturer and comes during a period of remarkable performance for Indian equity markets. With the Indian bourses recently surpassing Hong Kong to become the world’s fourth-largest stock market, Ola Electric’s IPO adds to the excitement and momentum in India’s financial sector.