Ola Electric to Launch IPO on 2 August, Estimated Valuation Around USD 4.4 Billion

The initial public offering (IPO) of Ola Electric, one of the largest electric two-wheeler companies, will open for retail investors on August 2. The company’s value for this IPO has been set between $4.2 billion and $4.4 billion. It will open a day earlier for institutional investors.

According to the IPO documents, it will close for retail investors on August 6. Ola Electric founder Bhavish Aggarwal will sell 3.79 crore shares in it. This is about 20 percent less shares than the estimate given in the draft prospectus of the IPO. The valuation of this company, which has investment from Japan’s Softbank, is about 22 percent less than the funding round in September last year. In that funding round led by Singapore’s investment firm Temasek, Ola Electric was valued at about $ 5.4 billion.

This will be the first IPO of any EV maker in the country. Last month, Ola Electric’s sales grew by about 107 percent on a year-on-year basis. Last month, 36,716 units of the company’s electric scooters were registered. The company claims that its share in this segment is about 46 percent. Ola Electric’s sales grew by about 57 percent in the first quarter of the current financial year. In the first half of this calendar year, the company’s sales have been more than two lakh units. It has become the first electric two-wheeler company to reach this figure in such a short period. Last month, the company updated its S1 X electric scooter with new features.

These features include Find My Scooter and Vacation Mode. This electric scooter does not have to be taken to the service center for software updates. Vacation mode is activated when the customer does not use the electric scooter for a long period. The company has made the S1 X available in 2 kW, 3 kW and 4 kW battery options. Its 2 kW battery variant has a range of about 91 kilometers on a single charge. It takes 7.4 hours to charge its battery. It can accelerate from 0-40 kmph in about 4.1 seconds. Its top speed is about 85 kmph. It has three riding modes – Eco, Normal and Sports.

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