India’s first EV makers’ IPO (Ola Electric’s IPO) is all set to launch next Friday!!
Retail subscription will be open from August 2 and will close on August 6. It is said that Ola is planning a lower valuation to ensure higher participation rate from investors.
It is aiming to raise ₹5,500 crore ($657 million) from its IPO.
The company would be valued between $4.2 billion to $4.4 billion, which is 18.5-22% lower than the last funding round in September.
The IPO Proceeds will be used for capex, repaying debt, and research and development (R&D), according to the Draft Red Herring Prospectus (DRHP), filed in December 2023.
Albeit a lossmaking company, Ola Electric has a 46% market share in e-scooters an competes with other top performing EV companies.
(DISCLAIMER: This is not a recommendation to buy. Always consult your financial advisor before you invest in stocks/mutual funds as they fluctuate in value and thus are risky).