![HOla Street! EV IPO Set to Ride in at Lower Price Tag](https://img.etimg.com/thumb/msid-111797589,width-210,height-158,imgsize-196936,resizemode-75/hola-street-ev-ipo-set-to-ride-in-at-lower-price-tag.jpg)
The proposed listing will be among the largest new-economy IPOs this year, signalling a revival of public market debuts by technology-first companies. Ecommerce firm FirstCry is gearing up to launch its IPO soon while Swiggy has confidentially filed its draft papers with the markets regulator.
The Bhavish Aggarwal-led electric vehicle firm is expected to raise ₹5,500 crore in fresh capital via the IPO, apart from the offer-for-sale (OFS) component. The current discussions on the $4 billion valuation are based on conversations with bankers and investors during the company's roadshows, according to sources.
![Ola Shareholding Ola Shareholding](https://img.etimg.com/photo/msid-42031747/et-logo.jpg)
"The valuation expectation has undergone readjustment since the EV major first filed its draft IPO papers. The company has agreed to a discount compared to its last round pricing," a person aware of the matter said.
Ola Electric was initially aiming for a $6-7 billion valuation but has since tempered its expectations. According to the draft red herring prospectus filed in December, it is facilitating an OFS of 95.2 million shares.
"Going forward, the company sees room for growth. It is looking to price the IPO in an attractive manner so those buying shares can make money after the company lists on the bourses," said a second person close to Ola Electric.
A spokesperson for the company did not respond to ET's query. ET first broke the news of Ola Electric's IPO pricing in its online edition on Tuesday evening.
Technology-first ventures have gained visibility on Indian bourses following the high-profile listings of Zomato and Nykaa in 2021. This year, office space sharing firm Awfis, travel-tech company Ixigo and insurtech company Digit have floated successful IPOs so far.
Ola Electric's plan to hit the market comes amid recent launches from Bajaj Auto and TVS Motors, which have challenged the Bengaluru-based company's market share in the first half of July, as per data from central government portal Vahan.
"At the moment, Ola is trending at around 35% [market] share compared with its peak of around 50%," another person aware of the matter said.
Ather Energy, which specialises in the performance scooter segment with its 450 range, launched a new vehicle, Rizta, in April to compete in the family scooter field dominated by Ola Electric with its S1 range of scooters.
Cutting Costs, Layoffs
Even as it approaches its IPO, Ola Electric has been cutting costs and laying off staff. It is letting go of around 600-800 employees, as first reported by ET on June 3, along with internal transfers as part of business restructuring.
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Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
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