📷 Image Credits: Moneycontrol
Ola Electric Mobility Ltd., India’s largest electric scooter maker, is facing investor pushback on its targeted valuation for its upcoming initial public offering. According to sources familiar with the matter, the company’s founder has been aiming for a potential valuation of as much as $7 billion in a Mumbai listing. However, initial feedback from investors suggests a valuation of about $5 billion which has raised concerns among current shareholders. At a valuation of $5 billion, Ola Electric’s current investors may opt not to sell existing shares in the company. The final decision is yet to be made, and discussions are ongoing. Ola Electric, backed by SoftBank Group Corp. and Tiger Global Management, is looking to raise 55 billion rupees ($659 million) by selling new shares in the IPO. India’s market regulator has already approved the company’s IPO plans. This development underscores the heightened interest in India’s equity capital markets. The IPO is part of Ola Electric’s ambitious plans to expand into battery-powered cars and EV cells. Founder Bhavish Aggarwal is building what he calls the world’s largest electric vehicle hub in southern India for producing battery-powered two-wheelers, cars, and lithium-ion cells. The company has also recently introduced electric motorcycles. Ola Electric intends to utilize a portion of the IPO proceeds to enhance the manufacturing capacity of its electric vehicle cell factory from 5 gigawatt hours to 6.4 gigawatt hours. Kotak Mahindra Capital Co., Citigroup Inc., Bank of America Corp. and Goldman Sachs Group Inc. are among the banks working on the share sale as per the company’s prospectus.