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Ola Electric is planning a big initial public offering (IPO) this week, worth about $740 million. This will be the first IPO by an Indian electric vehicle (EV) manufacturer.
The company has set the share price between INR 72 and INR 76 (about $0.86-$0.91). Employees will get a special discount of INR 7 per share. The aim is to attract a variety of investors and set up the company for future growth.
The IPO will be open for subscriptions from August 1 to August 6. There is already strong interest from major investors like Fidelity, Nomura, and Norway’s Norges Bank, as well as several large Indian mutual funds. This interest shows confidence in Ola Electric’s future and the expanding EV market in India.
Ola Electric plans to raise $660 million by issuing new shares. Existing investors, including founder Bhavish Aggarwal, will sell shares worth about $80 million. The money will be used for capital expenses and research and development to boost technology and production.
To attract more investors, Ola Electric will reserve 10% of the IPO for retail investors. This is expected to build market confidence and support long-term growth.
Anchor investors are important as they commit money before the general public can subscribe. Fidelity, Nomura, and Norges Bank are expected to invest around $75 million, $100 million, and $100 million, respectively. Additionally, major Indian mutual funds like SBI, HDFC, UTI, and Nippon India are expected to bid over $700 million in total.
The anchor investor portion of the IPO is around $330 million, showing strong interest from institutional investors.
The IPO will value the company between $4 billion and $4.2 billion. This is lower than its previous valuation of $5.4 billion from its last funding round with Temasek. The lower valuation aligns with market trends and aims to attract high participation.
Even with the lower valuation, the IPO comes at a good time in Indian capital markets, which are performing well. This is likely to draw significant investor interest and support Ola Electric’s growth goals.
Ola Electric’s IPO is a significant event for the Indian EV market. As a leader in e-scooters, the company is well-placed to benefit from rising demand for clean vehicles in India. Its focus on innovation and R&D will help it stay competitive.
This IPO is an important milestone for Ola Electric and the Indian EV market. By raising substantial funds and attracting major investors, Ola Electric is set to speed up its growth and promote sustainable transportation in India.
The IPO highlights the growing role of EVs in India’s automotive industry and the potential for market expansion. As Ola Electric moves forward, its strategies and investor support will be key in shaping the future of electric mobility in India.
