Electric scooter startup Ola Electric’s £614.6 mn IPO - biggest this year - is set to to open on Aug 2. This will be the first IPO by an auto company since Maruti Suzuki (then Maruti Udyog) went public in mid-2003.
The bidding for the IPO will start on Aug 2 and end on Aug 6 at a price band of Rs 72-76 per share. At the upper end of the price band, the implied valuation of the firm is $4 billion - lower than the $7-8 billion valuation it was targeting a few months ago. It’s also lower than the $5.4-billion valuation at which it had raised funds in its last round in Sept 2023.
“We wanted to price it at attractive, aggressive levels so that they (investors) make money,” Bhavish Aggarwal, founder & chairman of Ola Electric said.
Aggarwal said there is no slowdown in the India EV story. “Three years ago, when we launched our product, that’s when I believe the EV story began. I do not see any slowing down in the story… there are cyclical ups and downs, basis subsidy changes or some seasonal factors,” Aggarwal said. “Year-on-year… our growth is 90% (FY24 over FY23). The growth story is consistent and secular,” he added. He also said that as more companies enter the EV market and more products are launched, the scope will only expand.
