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The upcoming initial public offering (IPO) of Ola Electric Mobility is poised to be a windfall for several top executives and early investors in the company. This landmark event will make Ola Electric the first pure-play homegrown electric vehicle manufacturer to be listed on the stock exchanges, marking a significant milestone for the Indian EV sector.
Ola Electric's top 10 executives are projected to reap significant financial rewards, with their collective potential cash value estimated at ₹10,260 crore based on the lower end of the IPO's price band. This figure, derived from an analysis of the draft red herring prospectus by Mint, highlights the lucrative potential of the IPO. Notably, founder and chief executive Bhavish Aggarwal holds a stake worth approximately ₹9,919 crore, or $1.18 billion, making him one of the most significant beneficiaries of the IPO.
The IPO will not only benefit top executives but also early investors who have supported Ola Electric's journey. Prominent investors, including SoftBank Group from Japan, US hedge fund Tiger Global Management, Matrix Partners India, and Bollywood siblings Zoya and Farhan Akhtar, are expected to realize substantial returns. Tiger Global and Matrix Partners India, in particular, stand to make significant windfall gains due to their early investments at comparatively lower share prices.
Beyond the financial benefits for individual investors and executives, Ola Electric's IPO is anticipated to have broader implications for the Indian startup ecosystem. The listing is expected to provide a much-needed boost to investor sentiment in the startup sector, which has been grappling with an extended funding winter. The success of Ola Electric's IPO could encourage further investment in the EV sector, particularly in the domestic market, and serve as a positive signal for other startups seeking to go public.
While the IPO is expected to bring significant benefits to early investors and executives, it remains to be seen how long-term investors will fare. The company's valuation at the IPO is at a discount to its previous private funding round, which might raise questions about its future trajectory. Nevertheless, the IPO is expected to enhance consumer confidence in the EV sector and attract further investments, fostering a positive outlook for the industry's growth in India.
Source: Ola Electric’s IPO to bring big moolah for top employees, early investors