 |
|
Ola Electric, a leading player in India's electric two-wheeler market, is poised to enter the public sphere with a $734 million initial public offering (IPO) that seeks to value the company at $4 billion. Bhavish Aggarwal, the company's founder and CEO, views this IPO as a crucial milestone in Ola Electric's long-term growth strategy. The company, currently operating at a loss, aims to leverage the IPO proceeds to expand its operations and solidify its position in the burgeoning electric vehicle (EV) market.
Aggarwal, in an interview, emphasizes the significance of the IPO as a personal and professional achievement. He highlights the evolution of Ola Electric from a dream to a reality, and the IPO serves as a testament to the company's growth and investor confidence. The IPO also marks Ola Electric's first public listing, with plans for future listings in the pipeline. Aggarwal stresses the company's commitment to engaging with the public investing community and leveraging their support as they navigate the future of the EV industry.
While the IPO includes a small offer for sale (OFS) component, some investors are selling their shares at a loss. Aggarwal attributes this to the investors' belief in Ola Electric's long-term vision and their support for the company's strategy. The $4 billion valuation, which is lower than previous speculations, reflects Ola Electric's desire to attract a wider investor base and foster long-term growth. The company prioritizes investor participation and support over maximizing immediate valuations.
Aggarwal highlights the positive feedback received from investors regarding Ola Electric's story and progress. He emphasizes the company's strong market share in the electric two-wheeler segment, which currently stands at 47 percent. The company's commitment to manufacturing and technological innovation, as well as its established ecosystem, are key factors driving its success in the increasingly competitive EV market.
While Ola Electric remains unprofitable, Aggarwal acknowledges the company's progress towards profitability. He cites the strong revenue growth and improved margins as indicators of the company's financial health. The company's focus on building its manufacturing capabilities, particularly in cell manufacturing, will be crucial in achieving cost efficiencies and driving profitability. Ola Electric's unique positioning as a pure-play electric two-wheeler company differentiates it from other EV players like Tesla and BYD.
Addressing concerns regarding related-party transactions, Aggarwal clarifies that they account for less than 1.5 percent of total sales and are conducted by a separate entity. He emphasizes the company's commitment to transparency and fairness in all its operations.
Source: Good to see that everybody is coming into EV party: Ola Electric founder