Ola Electric has filed its preliminary draft papers with capital markets regulator Securities and Exchange Board of India (SEBI) to raise ₹5,500 crore through an initial public offering (IPO), according to a report by news agency Reuters. This will be the first IPO by a two-wheeler maker in India since the debut of Bajaj Auto in 2008.
The IPO will comprise an issue of fresh shares, while CEO Bhavish Aggarwal will sell up to 47.4 million shares, said the Reuters report quoting the draft prospectus dated December 22.
Also Read: Tesla on two wheels? Ola Electric faces service challenges as demand for electric scooters surges
Ola Electric dominates India’s electric two-wheeler segment with a 32 per cent market share and competes with TVS Motor, Bajaj Auto and Ather Energy, according to data from the Society Of Manufacturers Of Electric Vehicles.
The Bengaluru-based electric vehicle maker was last valued at $5.4-5.5 billion in October when it raised $384.43 million, including about $240 million in debt, from Temasek and State Bank of India.
However, the battery scooter maker had slashed its sales goals for 2023-2025 by more than half and delayed its target of achieving profits by a year, after reduced government incentives pushed up e-scooter prices.
To hold on to its lead in e-scooters, the company is rolling out products at steep discounts to lure in new, price-sensitive buyers. Its most affordable product, the S1 X+, is now available with a flat ₹20,000 discount, bringing down its ex-showroom cost to ₹89,999 and making it one of the most affordable e-scooters in the market.
The company is also pressing ahead with an aggressive retail strategy, including launching products at a discount and cutting prices of current products, trying to consolidate its market position ahead of its listing.
Ola Electric’s IPO comes at a time when India has seen a record 213 IPOs this year, including from Tata Technologies and JSW Infrastructure, while the benchmark indexes have scaled record highs.
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Published: 22 Dec 2023, 08:40 PM IST
