Ola Electric Set to Make IPO Debut in August: Expected Valuation and Market Outlook

August is when Ola Electric is expected to list.

Ola Electric, an Indian e-sccoter manufacturer funded by SoftBank, is expected to be valued at approximately $4.5 billion (roughly *37,360 crcre) for its initial public offering (IPO), which is 16–20% less than the valuation from its most recent funding round, according to two sources.

The first EV producer in India, Ola, received approval from the Indian markets regulator in June for its $660 million stock market debut. This is expected to be one of the biggest share sales of the year for the nation.

In the first week of August, Ola Electric is probably going to list on Indian stock exchanges. The two people, who are directly aware of the situation, stated as much.

The most recent round of fundraising for Ola Electric was headed by Temasek, an investment firm based in Singapore, and valued the company at $5.4 billion (about 344,820 crore). However, one of the insiders predicted that valuation would fall this time, citing a “recalibration” in the global market for IT companies.

The source stated, “Valuations have corrected overall in the market.” Although the ultimate valuation is subject to change, it is unlikely to approach the minimum valuation of $6 billion that Ola Electric’s fourthder, Bhavish Aggarwal, had intended to secure for the IPO.

In light of the fact that “I want the IPO to be attractively priced so there is an opportunity for investors to create wealth,” the second source predicted that Ola Electric’s value would be lower.

With its stock markets almost at all-time highs, India is witnessing a dramatic increase in IPOS. From 2019 and 2023, benchmark indexes have doubled in value.

In 2017, Ola Electric was established. With a 46 percent market share, it leads the e-scooter industry and holds joint ventures with TVS Motor, Bajaj Auto, and Ather Energy.

After fewer government incentives drove up the cost of e-scooters, Ola Electric cut its sales targets for 2023–25 by more than half in December of last year and postponed turning a profit by a year.

For the year that ended in March 2023, its consolidated grew to 1,472 crore ($176.14 million), while operating revenue increased by more than seven times.