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Ola Electric has engaged investment banks Kotak Mahindra Capital and Goldman Sachs for an initial public offering (IPO) in early 2024 to manage the share sale. According to a moneycontrol report, this makes Ola Electric one of the few venture capital-backed companies to enter IPO discussions within a six-month timeframe.
Electric scooter manufacturer Ola Electric, founded by Bhavish Aggarwal, is backed by investors such as SoftBank Group Corp and Tiger Global Management, and was valued at $5 billion in its last fundraise in 2022. Reportedly, more investment banks are likely to be added closer to the deal. As per media reports, the company had sold around 30,000 scooters in April, its highest so far, and is the market leader in the EV scooter space.
“Ola Electric has not finalised how much it plans to raise in the initial public offering (IPO) or what valuation it will seek, but it will aim for a valuation higher than $5 billion. If it sells 10% in the IPO – the minimum legally required to list – at that price, this could be India’s biggest IPO this year amid tepid market conditions. Filing its draft documents, marketing to investors and listing by the end of the year will be difficult,” said a close source aware of the matter as per the report.
Moreover, Kotak Mahindra Capital and Goldman Sachs are currently in advanced talks to be selected as financial advisors, with Kotak closely collaborating with the startup to determine the IPO’s structure. Sources indicate that the IPO planned by Ola Electric will consist of a combination of primary and secondary share offerings, as per the report.