The pricing of the Ola Electric IPO is expected to be around 25% lower than its private valuation of $5.4 billion, according to sources.

Ola Electric is preparing to launch its initial public offering (IPO) soon, aiming for a valuation of around $4 billion, which is lower than its previous valuation of $5.4 billion achieved in September 2023. This adjustment reflects a strategic move to attract investors by offering shares at a discounted price compared to its last private funding round. Initially targeting a valuation between $6-7 billion, Ola Electric has revised its expectations in light of market conditions.

The IPO, one of the largest in the new-economy sector this year, signifies a resurgence in public market debuts for technology-focused companies. Alongside Ola Electric, other tech firms like FirstCry and Swiggy are also advancing towards their respective IPOs. Ola Electric plans to offer approximately 95.2 million shares through an offer for sale (OFS).

Despite recent challenges from competitors like Bajaj Auto and TVS Motors, which have affected Ola Electric's market share, the company remains optimistic about future growth prospects. It aims to price the IPO attractively to ensure potential gains for investors once the shares are listed on the stock exchanges.

This move follows successful IPOs from technology-driven ventures in India, such as Zomato and Nykaa in 2021, which have increased the visibility and investor interest in such companies on the Indian stock market.