The Indian electric vehicle industry is about to be supercharged. Ola Electric, a prominent electric scooter manufacturer, is preparing for an initial public offering (IPO) in early 2024. The company has enlisted the services of esteemed investment banks, namely Kotak Mahindra Capital and Goldman Sachs, to oversee this milestone event.
Ola Electric stands out as one of the very few venture-backed firms to engage in IPO discussions within a span of six months. Founded by Bhavish Aggarwal, the company has a strong backing from notable investors such as SoftBank Group Corp and Tiger Global Management. It’s not surprising that the company was valued at a hefty $5 billion during its last fundraising event in 2022.
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Furthermore, it appears that this valuation is set to increase. While the specific details are yet to be finalized, Ola Electric aims to surpass the $5 billion valuation mark with this upcoming IPO. According to insiders, this could be the most significant IPO in India for the current year if market conditions remain steady.
The firm has marked its territory in the electric scooter market, achieving a record sale of approximately 30,000 scooters in April. This achievement propels Ola Electric to the top as a market leader in the electric vehicle scooter space.
On the other hand, the journey to the IPO won’t be a walk in the park. There are various challenges to surmount. For instance, marketing to potential investors, filing draft documents, and achieving a successful listing by the year’s end. Nonetheless, Goldman Sachs and Kotak Mahindra Capital are said to be in advanced discussions for their roles as financial advisors. Kotak is reportedly collaborating closely with Ola Electric to structure the IPO suitably.
The proposed IPO from Ola Electric will likely be a mix of primary and secondary share offerings.
This report was based on credible news provided by entrepreneur website. Stay tuned for more updates on this exciting development.