India's Ola Electric to launch IPO last week, valuation seen at around $4.4 billion

 Ola is planning the IPO at a lower valuation to ensure higher participation

Source By: Khaleej Times

Ola Electric, backed by SoftBank, is set to launch its IPO on August 2, with a valuation estimated between $4.2 billion and $4.4 billion. 

This represents a decrease of about 18.5% to 22% from its previous valuation of $5.4 billion in a funding round led by Temasek last September. The IPO will open to institutional investors on August 1 and close for retail subscriptions on August 6.

Ola founder Bhavish Aggarwal is slated to sell 37.9 million shares in this offering, around 20% less than initially planned.

The company has strategically opted for a lower valuation to encourage broader investor participation.

This IPO is significant as it marks the first for an Indian electric vehicle manufacturer and stands as one of the largest in the country this year. Despite the lowered valuation, Ola Electric's new share issue remains fixed at 55 billion rupees ($657 million).