Electric mobility startup Ola Electric is planning an initial public offering (IPO) in early 2024 and is in advanced talks with Kotak Mahindra Capital and Goldman Sachs for the same, per a recent report.
What Happened? According to a MoneyControl report, Ola Electric aims to go public before the government withdraws subsidies for electric vehicles. This ambition positions Ola Electric as one of the few venture-backed firms to plan an IPO so quickly.
Backed by major investors including SoftBank and Tiger Global, Ola Electric held talks with several investment banks in May to begin IPO preparations. Ola Electric is considering selecting Kotak Mahindra Capital and Goldman Sachs as financial advisors, with Kotak actively involved in structuring the IPO. The company might hire two more investment banks later. Legal advice for the IPO is being provided by Cyril Amarchand Mangaldas.
While no specific timelines are in place yet, the goal is to launch the IPO before next year’s elections. The IPO is likely to consist of both primary and secondary share offerings. The firm’s valuation is under consideration, with founder Bhavish Aggarwal reportedly aspiring for a market capitalization of $10 billion (₹82,737.54 crore).
The timing of the IPO coincides with the impressive sales growth of Ola’s electric two-wheelers. According to Redseer’s electric mobility report, the firm’s sales volumes tripled to 7.3 lakh units in FY23, giving it a 30% market share in the March quarter and leading for the full year with a 22% share. This sales surge sets a favourable stage for Ola Electric’s IPO.
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