Electric scooter maker Ola Electric is looking to file its preliminary papers for an initial public offer (IPO) before the market regulator by the end of this week. Sources told CNBC-TV18 on December 21 that Ola is likely to submit the draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) later in the day itself. However, a confirmation is awaited.
Earlier, the company was expected to file the DRHP by December 20.
The latest development comes a day after sources had suggested that the homegrown electric vehicle manufacturer is looking to raise $700 million through the
IPO exercise, which will give it a valuation of $7-8 billion. This valuation marks a substantial leap from previous funding rounds, prompting market experts to raise concerns about the swift surge.
In April 2022, Ola Electric secured ₹929 crore from Tekne Private Ventures and an additional ₹57 crore from Alpha Ventures in a Series D funding round, resulting in a company valuation of $4.6 billion. By October 2023, further investment of ₹3,200 crore from SBI and Temasek had increased the company’s valuation to $5.4 billion.
Through the
Ola Electric IPO proceeds, the firm aims to raise funds for its increasing EV portfolio, giga factory and sales.
The company recorded its highest-ever sales of 30,000 units in November 2023, giving it a market share of 35%. It has sold over 300,000 vehicles since its launch in December 2021. In December, the firm sold 9,841 e-scooters and in FY24, its sales have surpassed 1.8 lakh vehicles until now.
Meanwhile, Ola Electric is offering its S1 X+ at a ₹20,000 discount till the end of December.
Bhavish Aggarwal, the founder of Ola Electric, holds the largest share at 37%. Other significant shareholders include SoftBank at 23.6%, Tiger Global at 6.3%, ANI Technologies and Ola each at 4.7%, Matrix Partners at 3.8%, and Alpha Wave Global at 3.6%.
Ola's plans beyond electric two-wheelers
Launching a giga factory to manufacture lithium-ion cells by February 2024
Considering the launch of a 500km range electric car by late 2024
Testing an autonomous vehicle
Launched an AI app Krutrim, similar to ChatGPT
Joined ONDC with a food delivery plug-in
Resumed bike taxis in Bengaluru with electric S1 scooters
