Ola Electric, an e-vehicle startup, and childcare supply firm FirstCry, both backed by investor SoftBank, are preparing to submit their draft IPO documents soon, hinting at a potential initial public offering in early 2024.
According to reports from Moneycontrol, both Ola Electric and FirstCry plan to file their IPO papers within the upcoming week. SoftBank’s acknowledgment of the increased valuation of these firms has sparked optimism among investors.
“A source mentioned to Moneycontrol that FirstCry aims to raise $500 million, with 60 percent designated for the offer for sale (OFS) component and the rest as the primary portion.”
The anticipated timeline suggests FirstCry’s IPO might take place post the Lok Sabha Elections of 2024. Conversely, Ola Electric has initiated discussions with both domestic and international investors, aiming to expedite its IPO launch.
Moneycontrol’s report indicates Ola Electric intends to debut its IPO in early 2024, preceding FirstCry’s offering. The company has enlisted the services of Kotak Mahindra Capital and Goldman Sachs to facilitate its IPO launch.
Ola Electric intends to leverage its IPO to augment capital for increasing EV sales and establishing India’s inaugural lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu.
Expectations indicate that FirstCry’s IPO valuation might be reported around USD 4 billion at the time of its launch, with an issue size ranging between $500-600 million. Notably, it’ll be the second significant e-commerce entity to go public after Nykaa.
SoftBank aims to reduce its stake in FirstCry below 26 percent through the IPO. Concrete details regarding issue size and the anticipated launch date are slated to be disclosed by December 29, coinciding with the filing of the IPO drafts.
