Ola Electric founder and chairman Bhavish Aggarwal has said he doesn't regret taking the company public, a year after the EV maker made its market debut, adding investor scrutiny is key to building enduring businesses.
“The best companies in the world are always built in public markets. If you see the most iconic companies — Reliance, Tata companies, Adani Group companies, Airtel, or global companies like Apple, Google, and Meta — the rigour comes in from public market scrutiny,” Aggarwal said in an interview to Moneycontrol on August 15 at the company's newly opened gigafactory.
The company plans to manufacture lithium-ion cells at the Krishnagiri facility in Tamil Nadu to power its electric vehicles.
Aggarwal dismissed the idea that Ola Electric could have avoided the pressures of listing by raising more private capital. “Never. It is the right thing,” he said when asked if he regretted taking the company public.
The company has benefitted from transparent market feedback since its listing, he said in the interview held on the sidelines of Ola Electric’s annual event Sankalp. “I am very happy with the learnings we’ve had. I’m very happy for the market to give us such an honest, clear feedback. And we have to be…” he said, adding that adapting the feedback is now central to Ola Electric’s journey.
Ola Electric Mobility went public on August 9, 2024. The stock listed at Rs 91.18, nearly a 20 percent gain from the IPO price. The euphoria, however, did not last as the stock declined. On August 18, it was trading at Rs 41.14 in the afternoon, down 0.4 percent from the previous close.
The company has seen its stock performance fluctuate amid growing competition in the EV market and concerns around profitability.
Aggarwal’s remarks come as several Indian startups weigh IPO plans but remain cautious given the volatility and the mixed performance of new-age tech listings.
Ola has also engaged with bankers to secure Rs 1,000-1,200 crore ($120-140 million) in private credit, as the electric two-wheeler startup looks to refinance a bank loan, sources said.
This will be the company’s second fundraising in under 12 months since going public. Earlier this year, Ola Electric received board approval to raise Rs 1,700 crore by selling non-convertible debentures (NCDs) and other eligible debt securities.
Ola Electric’s close rival, Ather Energy, launched its IPO in April. The stock listed on May 6, debuting at Rs 328 on the NSE (a 2.2 percent premium to the upper band of IPO price of Rs 321) and Rs 326 on the BSE. In the afternoon, the stock was trading at Rs 414.15 on the National Stock Exchange, down 0.55 percent.
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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