Ola Electric plans to raise 66.2 billion to expand its electric two wheeler manufacturing business

Mondo Technology Updated on 2024-01-31

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Global Auto Trade Network Information,On December 22, SoftBank-backed Indian electric scooter maker Oola Electric watches on FridayThey will conduct an initial public offering (IPO) that plans to raise Rs 5,500 crore ($6.).$6.2 billion). The IPO is believed to be one of the largest ** offerings in India next year.

Reuters).

The IPO is India's first EV manufacturer's IPO and includes the issuance of new shares with up to 47.4 million shares by CEO BH**ish Aggarwal and SoftBank** up to 47.4 million shares and 23.9 million shares, respectively, according to a prospectus filed with the Indian market regulator.

According to Reuters, Ola Electric is backed by SoftBank and Singapore's Temasek and was valued at $5.4 billion in its latest funding round.

Ola Electric dominates the electric two-wheeler segment in India with a market share of 32 percent, competing with TVS Motor, Bajaj Auto and Ather Energy. Ather, which is backed by Singapore's ** investment firm GIC, also plans to list in India and has a market capitalization of $7, according to investment tracker Tracxn$39.4 billion.

Ola Electric's IPO comes amid a record wave of listings in India this year, including companies such as Tata Technologies and JSW Infrastructure.

Kranthi Bathini, strategist at Wealthmills, said: "OLA chose the right time to issue because the market was liquid. The primary market is receiving a huge response. ”

Earlier this month, Ola Electric slashed its sales target for 2023 to 2025 by more than half and postponed its goal of achieving profitability by a year due to reduced subsidies.

For the fiscal year ended March 31, Ola Electric's comprehensive loss widened to 147Rs 200 crore, while operating income increased more than sevenfold.

India** expects the share of electric two-wheelers in overall sales to increase from 4 percent in 2023 by 20307% rises to 60%-70%.

$1 = 83INR 0984).

Compiler: Global Auto Trade Network Stevie).

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