Ola Electric reduced its IPO price for this reason, according to CEO Bhavish Aggarwal

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Ola Electric reduced its IPO price for this reason, according to CEO Bhavish Aggarwal

July 30, 2024

Bhavish Aggarwal, founder and CEO of Ola Electric, stated that the firm tried to decrease the issue’s valuation in comparison to its previous private round to entice investors to its initial public offering (IPO). The largest initial public offering (IPO) of the year, valued at ₹6,146 crore, is now 25% lower than Ola Electric’s previous $5.4 billion valuation.

Bhavish Aggarwal told the Economic Times, “As a company that is four to five years old and has experienced significant growth, I wanted to ensure that we set an attractive price for the entire investor community in India. Our journey is important for the country, encompassing EVs, cell production, and advanced manufacturing in India. We embody many of the themes that will shape the future of the Indian economy. The feedback from investors has been very positive.”

Bhavish Aggarwal said that creating wealth in the near term is not the focus of his journey as an entrepreneur. Building the appropriate things for the long run is important, he stated. Though still in its infancy, Ola Electric has grown tremendously under our leadership. We had ₹5,300 crore in sales the previous year, and we are still seeing good growth. With a very high potential total addressable market in the automobile industry, we are thus seeing extremely significant growth.

Bhavish Aggarwal discussed the EV growth narrative during the IPO launch and stated that it is consistent, claiming that “potential is very large.” I see no signs of the EV narrative slowing down. As you can see, the incumbents have joined the party as well. Three pillars support our business model: internal R&D, manufacturing and supply chain, and D2C omnichannel distribution.”