Before Ola Electric issued its initial public offering in the future, the company decided to turn into a public company from a private limited company. Yes, you heard it right, Ola Electric is about to issue its IPO for which the company converted into a public company. Do you know what it takes to transform into a public company from a private limited company? It is not as easy as sounds because it needs significant milestones including undertaking a corporate restructuring to convert itself from a private limited company to a public company. Let’s delve deep into the details and find out more details in the following sections. Swipe down the page.
All the changes Ola Electric has done, are just for issuing its Initial Public Offering in the future. Since the company announced that it has turned into a public company, many have speculated the range of the company’s IPO. However, Ola Electric has not announced its IPO but our sources close to the development claimed its Initial Public Offering may be in the range of $800 million to $1 billion. Swipe down the page to unfold more details.
For the unversed, it is mandatory for a company to convert into a public company from a private limited company if it wants to be listed on the stock exchange and issue its IPO. As a result of transforming from a private entity to a public company Ola Electric Mobility Private Limited changed its name to Ola Electric Mobility Limited. A person close to the development said, “The next step is to file the Draft Red Herring Prospectus (DRHP). It is a powerful instrument that carries all the critical information about a company, thus helping investors make an informed decision.” Drag down the page and read more details.
Ola Electric is India’s leading manufacturer of electric scooters, it is backed by Japan’s investment firm SoftBank. Reports have claimed that Ola Electric has a total market share of 35 percent. Recently, Ola Electric secured around Rs 3200 crore from its equity and debt round obtained from the Temasek-led State Bank of India. The funding round rained the firm’s valuation of $5.5 billion which was $0.5 billion up from its previous valuation. Not to mention, the raised funds will be used to expand Ola’s EV business and establish India’s first Li-ion cell manufacturing facility in Tamil Nadu’s Krishnagiri.