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Ola Electric Mobility, India's largest electric scooter manufacturer, is reportedly facing challenges in its pursuit of an initial public offering (IPO). The company, founded in 2017 and backed by SoftBank Group Corp. and Tiger Global Management, aims to raise approximately $659 million through the sale of new shares. However, sources familiar with the matter suggest that Ola Electric is encountering resistance from investors regarding its targeted valuation.
The company's founder, Bhavish Aggarwal, has been seeking a potential valuation of up to $7 billion for the Mumbai listing. Yet, initial feedback from investors indicates a valuation closer to $5 billion may be more realistic. This discrepancy has led to discussions about whether existing investors will opt to sell their shares in the IPO at the lower valuation.
Ola Electric has made significant strides in the electric vehicle market, commanding a 48% share of India's electric two-wheeler segment as of the June 2024 quarter. The company operates the Ola Futurefactory, touted as the largest automated e-scooter manufacturing plant in India, with an annual production capacity of one million units.
The IPO is part of Ola Electric's ambitious expansion plans, which include developing battery-powered cars and EV cells. The company intends to use the proceeds to increase the manufacturing capacity of its electric vehicle cell factory from 5 gigawatt hours to 6.4 gigawatt hours.
Despite these growth initiatives, Ola Electric faces challenges such as continued operating losses and dependence on government subsidies for the EV sector. The company's ability to address investor concerns and demonstrate a clear path to profitability may be crucial in determining the success of its IPO plans.
As India's equity capital markets continue to show strength, the outcome of Ola Electric's IPO efforts could have significant implications for the country's burgeoning EV industry and the broader startup ecosystem.
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While Ola Electric Mobility's IPO prospects remain uncertain, investors eager to gain exposure to the electric vehicle market in India don't have to wait. At Linqto, we offer members access to interests in promising pre-IPO private companies, including potential leaders in the EV and sustainable transportation sectors. Our platform allows you to diversify your portfolio with lower minimum investments, potentially benefiting from the growth of innovative companies like Ola Electric Mobility before they go public.
1 - Yahoo Entertainment - (Bloomberg) -- Just two years ago, Bhavish Aggarwal was facing one of his biggest tests. A video on social media showed an Ola Electric Mobility Ltd. vehicle...
2 - Yahoo Entertainment - (Bloomberg) -- Just two years ago, Bhavish Aggarwal was facing one of his biggest tests. A video on social media showed an Ola Electric Mobility Ltd. vehicle...
4 - BusinessLine - Ola Electric Mobility launches IPO at ₹72-76/share, aiming to raise ₹6,145.6 crore for expansion and growth.
5 - BusinessLine - Ola Electric Mobility IPO sees strong debut, closing 20% higher, attracting more interest from institutional and retail investors.
*These comments should not be interpreted to mean that the company is formally pursuing or foregoing an IPO. The information provided above is based on current online discussions and is not intended as investment advice. Linqto does not endorse or guarantee the accuracy of this information, and we strongly recommend conducting your own research or consulting with a professional advisor before making any investment decisions. Linqto cannot be held liable for any investment outcomes resulting from the use of this information.
