The DRHP, filed to the market regulator Securities and Exchange Board of India (SEBI), is a preliminary offer that introduces a firm that is looking to list its shares publicly to potential investors in the market.
The firm expects to publicly list by the end of fiscal year 2024 and is looking to raise between $700 million and $800 million (Rs 5,836.3 crore to Rs 6,670.1 crore) at a $7-8 billion valuation (Rs 58,363 crore to Rs 66,701 crore), people in the know told ET.
Kotak Mahindra Bank, Bank of America, Citibank, and Goldman Sachs will be working on the offering, they added. In November, the firm converted to a public company from a private limited one in anticipation of the listing.
The leader in the electric two-wheeler market by some distance, Ola Electric reported that its net loss nearly doubled in FY23 to hit Rs 1,472 crore. At the same time, consolidated revenue grew over six-fold from a year ago to hit Rs 2,782 crore in FY23.
The Tiger Global-backed firm cut its sales goals for 2023-2025 by half and delayed its targeted profitability by a year, according to a Reuters report. Ola Electric reportedly now expects to sell 300,000 scooters in FY24, much lower than the earlier goal of 882,000 scooters, while its revenue target for FY24 has reportedly been cut down to $591 million, from the earlier goal of $1.55 billion.
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Ola Electric, along with other electric scooter makers, had been impacted after the government rolled back subsidies under the Faster Adoption of Manufacturing of Electric Vehicles (FAME-II) scheme around June, with overall electric two-wheeler sales dropping 56%, according to data from the government’s transportation portal Vahan. The market has since recovered, with leader Ola Electric receiving approximately 30,000 new registrations in November, its best month ever. This year, Ola Electric, has raised a total of $384 million in a debt and equity round from the likes of State Bank of India and Temasek as it prepared for its IPO. Close competitor Ather, on the other hand, raised Rs 900 crore ($108.27 million) from its shareholders Hero MotoCorp and Singapore’s GIC in September.
