In a strategic move, Ola Electric has shifted into high gear on its journey toward an Initial Public Offering (IPO) by officially converting into a public company. This significant step follows the recent closure of a colossal INR 3,200 Crore funding round led by Temasek, indicating the company’s robust financial standing and ambitious plans for expansion.
IPO Plans in Overdrive: Ola Electric, a prominent player in the electric vehicle (EV) sector, is now gearing up for a public listing in 2024. The recent conversion of the parent company’s name from Ola Electric Mobility Private Limited to Ola Electric Mobility Limited is a pivotal move in this direction. The startup is set to file its draft red herring prospectus (DRHP) with the market regulator, SEBI, outlining key details such as the funds to be raised, utilization plans, and the company’s financial health.
Strategic Name Change: As revealed in regulatory filings accessed by Inc42, the transformation into a public entity under Section 18 of the Companies Act, 2013, prompted the name change. Ola Electric Mobility Private Limited officially became Ola Electric Mobility Limited with the central government’s written approval.
Milestone Funding Round: The conversion to a public company follows closely on the heels of Ola Electric’s impressive INR 3,200 Crore funding round, with Temasek leading the investment. The substantial funding injection has undoubtedly fueled the company’s momentum and positioned it favorably for the upcoming IPO.
Accelerated IPO Timeline: Initially eyeing a listing before the general elections in the coming year, Ola Electric has expedited its IPO plans. Reports suggest that the startup aims to raise $700 million through its public listing, with renowned financial institutions such as Kotak, ICICI, Bank of America, and Goldman Sachs serving as advisers. Ola Electric is targeting a market capitalization of $10 billion, underscoring its ambitious vision for the future.
