Summary:
Ola Electric, India's biggest e-scooter maker, is seeking $734 million in an IPO.
The IPO will test investor appetite for EV makers amid growing adoption in India.
The startup, backed by SoftBank and Tiger Global, aims to use the funds for expansion, including a large-scale electric vehicle hub.
India's booming IPO market is attracting EV companies, with Hyundai's Indian unit also expected to list this year.
Ola Electric's IPO comes amidst investor pushback on its valuation, with the initial target of $7 billion reduced to a potential market value of $4 billion.
Ola Electric Aims for $734 Million India IPO
Ola Electric Mobility Ltd., India's leading e-scooter manufacturer, is seeking $734 million in an initial public offering (IPO). The IPO, which opens on August 2nd, will test investor appetite for electric vehicle (EV) companies as the EV market in India continues to grow.
Backed by major investors like SoftBank Group Corp. and Tiger Global Management LLC, Ola Electric has set a price range of 72-76 rupees per share. The company plans to use the funds to expand its operations, including setting up a large-scale electric vehicle hub to produce two-wheelers, cars, and lithium-ion cells.
India's booming IPO market is attracting a surge of EV companies looking to capitalize on the growing demand for alternative fuel vehicles. Hyundai Motor Co.'s Indian unit is also expected to list this year, potentially becoming the largest IPO in India's history.
Ola Electric's IPO comes at a time when the company is facing investor pushback on its valuation. While the founder initially sought a valuation of up to $7 billion, the IPO's upper price range suggests a market value of $4 billion.
Despite the challenges, Ola Electric remains a major player in the Indian e-scooter market, holding a 35% market share. The company's product lineup includes electric motorbikes and India's cheapest e-scooter.
The IPO will be managed by Goldman Sachs (India) Securities, Kotak Mahindra Capital Company Ltd., BofA Securities India Ltd., Axis Capital Ltd., and SBI Capital Markets Ltd.
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