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Old 26th May 2023, 10:30   #1
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Ola Electric plans to raise US$ 1 billion through an IPO

According to a media report, Ola Electric is planning to launch an initial public offering (IPO) with the aim to raise between US$ 800 million to US$ 1 billion, with a valuation of US$ 10 billion.

Ola Electric plans to raise US$ 1 billion through an IPO-gerua1.jpg

Reports also state that Ola Electric has appointed Goldman Sachs, ICICI Securities, Axis Capital, Citi and Kotak Securities as lead managers for its IPO. The EV maker is also said to have appointed Cyril Amarchand Mangaldas and Shardul Amarchand Mangaldas as legal advisors.

The Ola Electric IPO is expected to open in the last quarter of the current fiscal. It could be a combination of fresh issues of shares and offer-of-sale by existing investors, accounting for around 10% of the share sale.

Ola Electric would be the first Indian EV maker to be listed. If the company is able to secure the US$ 10 billion valuation, it would make it the third most-valued 2-wheeler brand in India after Bajaj Auto and Eicher Motors.

Source: ET Auto

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Old 26th May 2023, 10:36   #2
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Re: Ola Electric plans to raise US$ 1 billion through an IPO

Don't look, but they just raised money at $6 billion valuation.
https://www.team-bhp.com/forum/motor...ing-round.html (Ola Electric receives US$ 300 million in latest funding round)

Ola Electric promoters to last round private equity investors:

Ola Electric plans to raise US$ 1 billion through an IPO-screenshot_2.jpg

Last edited by SmartCat : 26th May 2023 at 10:38.
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Old 26th May 2023, 11:08   #3
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Re: Ola Electric plans to raise US$ 1 billion through an IPO

This is crazy. These companies and their valuations are always media- propaganda driven.

Let them earn some some profit, then I will buy their shares until then bye bye.
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Old 26th May 2023, 17:26   #4
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Re: Ola Electric plans to raise US$ 1 billion through an IPO

I am unable to understand the start-up valuations.

unicorns in general have very unrealistic valuations without considerations to the risks

We don't know whether Ola Electric is able to make money on unit of sales or not.

as any auto manufacturing unit have very high capex in initial days, we can assume this company will also be a big cash cows for some time.

On the investment note it seems Construction of Ola electric cell manufacturing facility is under full swing.

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Old 27th May 2023, 10:34   #5
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Re: Ola Electric plans to raise US$ 1 billion through an IPO

Most Unicorns are least concerned about profits and concentrate only on sales. This is because the valuations seem to be rotate around sales, rather than profits.

This video explains in plain words how do unicorn play games in valuation.

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Old 28th May 2023, 00:07   #6
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Re: Ola Electric plans to raise US$ 1 billion through an IPO

Quote:
Originally Posted by SmartCat View Post
Don't look, but they just raised money at $6 billion valuation.
This is the new startup Ponzi scheme. Fleece the next investor to pay the previous and then finally fleece the public with an IPO. No wonder there is huge uptake in AIF investing in private equity by HNIs.

When I was a youngster I scoffed at Karl Marx when he wrote that the rich build systems to suit them. Though not a fan of communism, I think there is some truth in what he said.
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Old 28th May 2023, 10:37   #7
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Re: Ola Electric plans to raise US$ 1 billion through an IPO

Quote:
Originally Posted by BigB View Post
Most Unicorns are least concerned about profits and concentrate only on sales. This is because the valuations seem to be rotate around sales, rather than profits.

This video explains in plain words how do unicorn play games in valuation.

https://www.Youtube.com/watch?v=RPImGpEoDMU
I somehow feel that sales are only a part of the valuation equation - the other parts with most weightage seem to be the amount of $ pumped in prior to IPO and the standing of the equity investors.
I.e. if someone like Softbank has pumped in 500mn already, you can bet that the IPO will get launched at ludicrous prices!!

Last edited by Nilesh5417 : 28th May 2023 at 10:38.
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Old 28th May 2023, 10:46   #8
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Re: Ola Electric plans to raise US$ 1 billion through an IPO

Ola cabs is still not profitable right after more than a decade? It somehow feels startups these days are more about race to becoming ‘unicorn’ and then eventually exit. Profitability be damned.

Then there are shows like Shark Tank which make you celebrity. Ashneer Grover apparently is appearing on Roadies now. All his shenanigans till date make perfect sense now.

Ola Electric plans to raise US$ 1 billion through an IPO-img_1260.jpeg
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