Ola Electric may be valued lower at $4.5 billion for IPO: Report

Ola Electric IPO: In its last funding round in September, which was led by Singapore investment firm Temasek, Ola Electric was valued at $5.4 billion.

Ola Electric may be valued lower for its initial public offering

Ola Electric that is gearing up for its initial public offering (IPO) is likely to value the company around $4.5 billion, which is around 16-20 per cent lower than the valuation at its last funding. In its last funding round in September, which was led by Singapore investment firm Temasek, Ola Electric was valued at $5.4 billion.

According to a report in news agency Reuters, the valuation would drop due to a recalibration in the valuation of tech stocks globally. The source told the agency that valuations have corrected overall in the market. The source said that the valuation could still change but is unlikely to reach the $6 billion that founder Bhavish Aggarwal had hoped to achieve for the IPO.

However, another source said that the valuation is likely to be lower since Ola Electric wants the IPO to be “attractively priced so there is an opportunity for investors to create wealth”.

Founded in 2017, Ola Electric dominates the e-scooter market with its offerings and commands 46 per cent market share. It competes with TVS Motor, Bajaj Auto, and Ather Energy.

Source: https://www.businesstoday.in/markets/ipo-corner/story/ola-electric-may-be-valued-lower-at-45-billion-for-ipo-report-437441-2024-07-17

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