Ola Electric, the electric vehicle (EV) manufacturer, is set to proceed with its initial public offering (IPO) later this year, confirmed Chairman and Managing Director Bhavish Aggarwal in an interview with CNBC-TV18. Aggarwal emphasized that the exact timing of the IPO would hinge on ongoing processes.
“We are working through these observations and still have a few processes to complete over the next few weeks or months,” he told CNBC-TV18.
In June 2024, the Securities and Exchange Board of India (SEBI) approved Ola Electric‘s IPO, comprising a primary issuance of ₹5,500 crore and a secondary sale of ₹1,750 crore. This approval marks Ola Electric as the first EV startup to receive such clearance from the market regulator.
The EV company applied for a draft red herring prospectus in December 2023 to raise ₹5,500 crore. Additionally, it has proposed an offer to sell 95.12 million equity shares at a face value of ₹10.
The company, backed by SoftBank and Temasek, has engaged in discussions with investors, focusing on growth and scale rather than valuation.
“Our conversations are not about the valuation per se but the business we are building and the scale,” Aggarwal said.
Aggarwal, however, did not comment on the company’s valuation but said the investors’ response has been very encouraging. He said that the gross margins have improved in the last 2 to 3 years.
“From June last year, for which financials are disclosed in the DRHP, to now, you can see our sales on the Vahan platform,” Aggarwal told CNBC-TV18.
There were rumours that another related company, Ola Cabs, might launch an IPO. According to a Reuters report, Ola Cabs is planning to go for a $500 million IPO. Aggarwal, however, did not share any details on that.
Ola Electric is a Bangalore-based company founded in 2017 as a wholly subsidiary of ANI Technologies, the parent company of Ola Cabs.