The largest initial public offering (IPO) in India this year, expected to draw significant international investors and demonstrate rising trust in the country's financial markets, was announced by e-scooter producer Ola Electric on Monday. The company said it intended to raise $734 million in this sale.
According to LSEG statistics, from January and July, over 150 Indian firms raised around $5 billion through public listings in the nation as a result of the stock market boom. This amount is roughly double what was raised during the same period previous year.
Investors may place a wager on the administration of Prime Minister Narendra Modi, as well as companies ranging from Tata Motors and TVS Motor to Hyundai Motor, by participating in the first initial public offering (IPO) of an Indian electric car manufacturer.
At a press conference in Mumbai, Ola's chairman, Bhavish Aggarwal, stated to reporters, "Our mission is to really make India a global EV hub." He also posed for pictures while riding his e-scooters, which start at $900.
With support from SoftBank, Ola Electric has emerged as the leading contender in a nation where the number of people driving clean cars is still small but growing quickly. Despite missing sales targets the previous year, as of June 30, it had 46% of the e-scooter market.
Aggarwal is heavily banking on cleaner cars, and his motto, "Tesla is for the West and Ola for the rest," has become well-known.
Aggarwal had intended to begin selling electric cars in 2024, but according to Reuters, those plans have been shelved so that the business may concentrate on producing EV battery cells and e-scooters. As investors came back to Big Tech firms that had sparked widespread sell-offs earlier in the week, it also has intentions to get into the electric bike market.
Ola, according to Aggarwal, has a strong lineup of e-motorbike products.
Due to Ola's aggressive entry into the e-scooter business, established players like TVS, Hero MotoCorp, and Bajaj Auto were forced to change course. Competition will increase with its debut into the motorbike market, which accounts for two-thirds of all two-wheelers sold in the nation.
According to a term sheet, the firm, which sold its first scooter in 2021, is valued at $4 billion. The IPO is scheduled to take place between August 1 and August 6.
This valuation is around 25% less than Ola's September fundraising round valuation of $5.4 billion, which was backed by Temasek, an investment group based in Singapore.
According to people who spoke on condition of anonymity, the lower number is the result of both Ola's aim to draw investors to the stock offering and a correction in the valuation of international tech businesses.
According to unnamed sources, the IPO is expected to attract bids at the $4 billion valuation from Fidelity, Nomura, and Norges Bank in addition to a number of Indian mutual funds.
According to the term sheet, Ola would sell off its approximately $77 million interest to IPO investors and issue new shares in order to raise $657 million.
In an advertising in the Financial Express newspaper, the losing business revealed the price range of 72 to 76 rupees ($0.86-$0.91), with a 7 rupee per share discount for certain qualified personnel.
Aggarwal and investors, including Matrix Partners and SoftBank, will part with a portion of their holdings during the IPO.
10% of the IPO will be allocated for retail investors, according to the newspaper advertisement published on Monday. The money raised will be used to pay for capital expenditures as well as R&D.
(Source:www.investing.com)
According to LSEG statistics, from January and July, over 150 Indian firms raised around $5 billion through public listings in the nation as a result of the stock market boom. This amount is roughly double what was raised during the same period previous year.
Investors may place a wager on the administration of Prime Minister Narendra Modi, as well as companies ranging from Tata Motors and TVS Motor to Hyundai Motor, by participating in the first initial public offering (IPO) of an Indian electric car manufacturer.
At a press conference in Mumbai, Ola's chairman, Bhavish Aggarwal, stated to reporters, "Our mission is to really make India a global EV hub." He also posed for pictures while riding his e-scooters, which start at $900.
With support from SoftBank, Ola Electric has emerged as the leading contender in a nation where the number of people driving clean cars is still small but growing quickly. Despite missing sales targets the previous year, as of June 30, it had 46% of the e-scooter market.
Aggarwal is heavily banking on cleaner cars, and his motto, "Tesla is for the West and Ola for the rest," has become well-known.
Aggarwal had intended to begin selling electric cars in 2024, but according to Reuters, those plans have been shelved so that the business may concentrate on producing EV battery cells and e-scooters. As investors came back to Big Tech firms that had sparked widespread sell-offs earlier in the week, it also has intentions to get into the electric bike market.
Ola, according to Aggarwal, has a strong lineup of e-motorbike products.
Due to Ola's aggressive entry into the e-scooter business, established players like TVS, Hero MotoCorp, and Bajaj Auto were forced to change course. Competition will increase with its debut into the motorbike market, which accounts for two-thirds of all two-wheelers sold in the nation.
According to a term sheet, the firm, which sold its first scooter in 2021, is valued at $4 billion. The IPO is scheduled to take place between August 1 and August 6.
This valuation is around 25% less than Ola's September fundraising round valuation of $5.4 billion, which was backed by Temasek, an investment group based in Singapore.
According to people who spoke on condition of anonymity, the lower number is the result of both Ola's aim to draw investors to the stock offering and a correction in the valuation of international tech businesses.
According to unnamed sources, the IPO is expected to attract bids at the $4 billion valuation from Fidelity, Nomura, and Norges Bank in addition to a number of Indian mutual funds.
According to the term sheet, Ola would sell off its approximately $77 million interest to IPO investors and issue new shares in order to raise $657 million.
In an advertising in the Financial Express newspaper, the losing business revealed the price range of 72 to 76 rupees ($0.86-$0.91), with a 7 rupee per share discount for certain qualified personnel.
Aggarwal and investors, including Matrix Partners and SoftBank, will part with a portion of their holdings during the IPO.
10% of the IPO will be allocated for retail investors, according to the newspaper advertisement published on Monday. The money raised will be used to pay for capital expenditures as well as R&D.
(Source:www.investing.com)