Ola Electric set to file DRHP by next week for 2024 IPO
ETtech
Synopsis
Ola Electric expects to publicly list by the end of fiscal year 2024 and is looking to raise between $700 million and $800 million (Rs 5,836.3 crore to Rs 6,670.1 crore) at a $7-8 billion valuation (Rs 58,363 crore to Rs 66,701 crore), people in the know told ET.
By ETtech
Last Updated:
Electric scooter maker Ola Electric is set to file its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) by next week, as it prepares for an initial public offering (IPO).
The firm expects to publicly list by the end of fiscal year 2024 and is looking to raise between $700 million and $800 million (Rs 5,836.3 crore and Rs 6,670.1 crore) at a valuation between $7 billion and $8 billion valuation (Rs 58,363 crore and Rs 66,701 crore), people in the know told ET.
Kotak Mahindra Bank, Bank of America, Citibank, and Goldman Sachs will be working on the offering, they added.
Ola Electric, which is the leader in the electric two-wheeler market by some distance, reported that its net loss nearly doubled in FY23 to Rs 1,472 crore. At the same time, consolidated revenue grew over six-fold from a year ago to hit Rs 2,782 crore.
The Tiger Global-backed firm has cut its sales goals for 2023 to 2025 by half and delayed its targeted profitability by a year, according to a Reuters report. Ola Electric reportedly now expects to sell 300,000 scooters in FY24, much lower than the earlier goal of 882,000 scooters, while its revenue target for FY24 has reportedly been cut to $591 million, from the earlier goal of $1.55 billion.
Ola Electric, along with other electric scooter makers, had been impacted after the government rolled back subsidies under the Faster Adoption of Manufacturing of Electric Vehicles (FAME-II) scheme around June, with overall electric two-wheeler sales dropping 56%, according to data from the government’s transportation portal, Vahan. The market has since recovered, with leader Ola Electric receiving approximately 30,000 new registrations in November, its best month ever.
This year, Ola Electric, has raised a total of $384 million in a debt and equity round from the likes of State Bank of India and Temasek, as it geared up for the IPO. Close competitor Ather, on the other hand, raised Rs 900 crore ($108.27 million) from shareholders Hero MotoCorp and Singapore's GIC in September.
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Kotak Mahindra Bank, Bank of America, Citibank, and Goldman Sachs will be working on the offering, they added.
Ola Electric, which is the leader in the electric two-wheeler market by some distance, reported that its net loss nearly doubled in FY23 to Rs 1,472 crore. At the same time, consolidated revenue grew over six-fold from a year ago to hit Rs 2,782 crore.
The Tiger Global-backed firm has cut its sales goals for 2023 to 2025 by half and delayed its targeted profitability by a year, according to a Reuters report. Ola Electric reportedly now expects to sell 300,000 scooters in FY24, much lower than the earlier goal of 882,000 scooters, while its revenue target for FY24 has reportedly been cut to $591 million, from the earlier goal of $1.55 billion.
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Ola Electric, along with other electric scooter makers, had been impacted after the government rolled back subsidies under the Faster Adoption of Manufacturing of Electric Vehicles (FAME-II) scheme around June, with overall electric two-wheeler sales dropping 56%, according to data from the government’s transportation portal, Vahan. The market has since recovered, with leader Ola Electric receiving approximately 30,000 new registrations in November, its best month ever.
This year, Ola Electric, has raised a total of $384 million in a debt and equity round from the likes of State Bank of India and Temasek, as it geared up for the IPO. Close competitor Ather, on the other hand, raised Rs 900 crore ($108.27 million) from shareholders Hero MotoCorp and Singapore's GIC in September.
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( Originally published on Dec 11, 2023 )
