Softbank backed Ola Electric's $740 mn IPO likely in August

Ola Electric, backed by Japanese investment firm Softbank, is planning to launch its initial public offering as early as the first two weeks of August, according to a Moneycontrol report.

The proposed IPO, the first by an Indian EV two-wheeler, would be a watershed moment for the domestic auto industry, encouraging rivals such as Ather Energy to examine value unlocking schemes.

"The firm is looking to raise around $740 million through a combination of a fresh issue and an offer for sale, with a post-money valuation of $4-4.25 billion," Moneycontrol reported.

The desired valuation was derived to create an opportunity for investors to generate returns. Another person was privy to the process.

Temasek, the Singapore investment powerhouse, sponsored Ola Electric's most recent funding round in September, which valued the company at $5.4 billion.

According to the draft filings, Ola Electric's IPO included a fresh offering of RsAccording to its draft papers, Ola Electric's IPO included a fresh issue of Rs 5,500 crore and an offer for sale (OFS) of Rs 1,750 crore, for a total of Rs 7,250 crore. Existing owners reportedly sold 95.19 million shares in the OFS.

Founder Bhavish Aggarwal will sell 47.3 million shares. According to the draft papers, the firm's founding investors, including AlphaWave, Alpine, DIG Investment, Matrix, and others, will sell 47.89 million shares through the OFS.

According to the DRHP, Ola Electric will use the profits for capital expenditures, debt repayment, and research and development (R&D).