Ola Electric’s $4 Billion IPO Valuation Sparks Buzz: Lower Than Last Round, Bhavish Aggarwal’s Big Move Amid Bajaj Auto and TVS Motors Competition!

Ola Electric is set to launch its public offering soon at a discounted valuation of about $4 billion, which is roughly 25% less than its last private funding round. In September 2023, Ola Electric was valued at $5.4 billion when it raised $140 million from Singapore’s Temasek.

IPO

The upcoming IPO will be one of the biggest for tech companies this year, signaling a revival in public listings. Other companies like FirstCry and Swiggy are also preparing for their IPOs.

Ola Electric, led by Bhavish Aggarwal, aims to raise ₹5,500 crore through the IPO, which includes both fresh capital and an offer-for-sale (OFS) component. The $4 billion valuation is based on discussions with bankers and investors during roadshows.

Readjustment in Valuation

A source said, “The valuation has been readjusted since the EV company first filed its draft IPO papers. Ola Electric has agreed to a lower valuation compared to its last funding round.” Initially, the company aimed for a $6-7 billion valuation. According to the draft red herring prospectus filed in December, it is facilitating an OFS of 95.2 million shares. Another source added, “The company wants to price the IPO attractively so that new shareholders can profit after listing.”

A spokesperson for Ola Electric did not respond to queries. ET first reported Ola Electric’s IPO pricing online on Tuesday evening.

Tech Companies

Tech companies have gained attention on Indian stock exchanges following the high-profile listings of Zomato and Nykaa in 2021. This year, firms like Awfis, Ixigo, and Digit have successfully launched IPOs.

Ola Electric’s IPO plans come amid competition from Bajaj Auto and TVS Motors, which have affected Ola’s market share in the first half of July, according to central government data from Vahan. Ola’s market share is currently around 35%, down from a peak of 50%.

Ather Energy

Ather Energy, known for its 450 range of performance scooters, launched a new model, Rizta, in April to compete with Ola Electric’s S1 range in the family scooter segment.

In preparation for the IPO, Ola Electric has been cutting costs and laying off staff. As first reported by ET on June 3, the company is letting go of around 600-800 employees and restructuring internally.