NEW DELHI: SoftBank-backed Indian e-scooter maker Ola Electric said on December 22 that it will raise Rs 55 billion rupees ($662 million) in an initial public offering (IPO) that is tipped to be one of the country’s biggest share sales next year.
The offering, which is the first by an EV-maker in the country, will include an issue of fresh stock, with CEO Bhavish Aggarwal and SoftBank selling up to 47.4 million and 23.9 million shares, respectively, according to a draft prospectus filed with the Indian market regulator.
Ola Electric’s IPO comes at a time when India has seen a record number of listings this year, including Tata Technologies and JSW Infrastructure.
“Ola is launching the issue at the right time since there is ample liquidity … the primary market is receiving a humongous response,” said Kranthi Bathini, equity strategist at WealthMills Securities.
Earlier this month, Ola Electric 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.
