In a bid to prepare for the Initial Public Offering, Ola Electric has become a public company, in the coming months. For the unversed, to transform into a public company from a private limited company, a company needs a significant milestone that involves undertaking a corporate restructuring, regulatory filings claimed. Meanwhile, the Initial Public Offering of Ola Electric has come under scrutiny, and speculations about it have started. It is expected that Ola Electric’s IPO may range between $800 million and $1 billion. We have poured in everything that you need to know about it. Kindly drag down the page and take a look at the following sections.
Its IPO may lay between $800 million and $1 billion. Speaking of the transformation of a company into a public company from a private limited company, it is mandatory to list on the stock exchange. In addition, the name of the company also gets changed. Likewise, Ola Electric Mobility Private Limited has become Ola Electric Mobility Limited. A person familiar with the development said, “The next step is to file the Draft Red Herring Prospectus (DRHP). It is a powerful instrument that carries all the critical information about a company, thus helping investors make an informed decision.” Shift to the following section and read more details.
Ola Electric is backed by Japan’s investment firm SoftBank. It is India’s leading company that manufactures electric scooters. Therefore, it stands to have a market share of almost 35 percent. Recently, Ola Electric secured about Rs 3200 crore in funding as part of its debt and equity round. Reportedly, the funding of Rs 3200 crore was gained from Temasek-led marquee investors and project debt from SBI (State Bank of India). As per the sources, the funding round also includes equity, obtained Bengaluru-based company’s $5.5 billion which was previously $5 billion. Continue reading this article and learn more.
The obtained funds from the funding round will be used to expand Ola’s electric vehicle business. The establishment of India’s first lithium-ion (Li-ion) cell manufacturing facility in Krishnagiri, Tamil Nadu will also be done through this money. These funds will also allow Ola Electric to speed up the growth of its two-wheeler manufacturing power to facilitate the launch of electric bikes and electric cars and expedite the construction of the Gigafactory. Ola Electric led by Bhavish Aggarwal competes with Okinawa Autotech, Ather Energy, Ampere EV by Greaves, TVS Motor Company, and Hero Electric.