Ola Electric secures Sebi approval for Rs 5,500 crore IPO

Electric vehicle (EV) penetration in vehicle sales has risen sharply from ~ 1% in FY ‘21 to ~7% in FY ‘24. The initial public offering (IPO) allows Ola Electric to fund capacity expansion and capitalise on the fast-growing EV market. The accompanying offer for sale will allow promoters and private equity investors to partially exit their positions. The IPO could also be indicative of a maturing EV sector, characterised by more predictable revenues and cash flows.

How will Ola Electric’s valuation compare with that of internal combustion engine (ICE)–powered auto companies? Will we see more IPOs in the EV space going forward?