Ola Electric, an Indian electric vehicle manufacturer, intends to launch an initial public offering (IPO) in late 2023, aiming to raise $600 million to $1 billion. CEO Bhavish Aggarwal will meet with investors in Singapore and the US to discuss the company’s growth, targeting a valuation exceeding $5 billion.
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Ola Electric, an electric vehicle (EV) manufacturer, is reportedly planning to hold discussions with investors in Singapore and the US regarding its upcoming initial public offering (IPO). The company aims to commence its IPO in late 2023 and raise between $600 million to $1 billion. Bhavish Aggarwal, the founder and CEO of Ola, is expected to travel to Singapore, the US, and the UK to pitch to investors such as GIC, BlackRock, and T Rowe Price. Ola Electric is targeting a valuation exceeding $5 billion.
The early investor outreach by Ola Electric is aimed at explaining the potential of India’s nascent EV market, which is still emerging and relatively new. The company plans to create investor confidence by providing a detailed understanding of its business, growth trajectory, and valuation. Ola Electric intends to file its draft red herring prospectus (DRHP) with regulators by August, with Bank of America appointed as the lead manager for the IPO. Goldman Sachs, Citi, Kotak Mahindra Bank, Axis Bank, and ICICI Securities will also oversee the listing process.
Ola Electric recently appointed Topsy Mathew as the head of corporate finance and treasury in preparation for its potential IPO. The company has enlisted Cyril Amarchand Mangaldas and Shardul Amarchand Mangaldas as legal advisors. In a previous funding round, Ola Electric raised $300 million at a valuation of $6 billion. The parent company, Ola, has undergone restructuring, shutting down verticals such as OlaDash and OlaCars, and reducing staff across multiple departments.
Despite the challenges, Ola Electric has performed well in the EV market, leading in two-wheeler EV registrations and achieving significant growth. The Indian EV industry is poised for healthy expansion, driven by government incentives, increased user demand, and infrastructure development. It is projected to reach a market size of $114 billion by 2029.
