Indian stock exchanges are set to see two exciting new listings as electric vehicle (EV) maker Ola Electric and pharmaceutical company Emcure Pharmaceuticals received approval from the Securities and Exchange Board of India (SEBI) to launch their initial public offerings (IPOs). This paves the way for both companies to raise funds by selling shares to the public.
Ola Electric, based in Bengaluru, is poised to become the first Indian EV startup to go public. The company is aiming for a valuation of around $6 billion through its IPO. This offering will consist of two parts:
- Fresh issue of equity shares: This means Ola Electric will create and sell new shares to raise Rs 5,500 crore (approximately $7.7 billion).
- Offer for sale (OFS): Existing investors and promoters of Ola Electric will also be offering some of their existing shares for sale, totaling 95.2 million shares.
While Ola Electric’s revenue grew significantly in the last financial year, from Rs 373 crore to Rs 2,631 crore, it’s important to note that the company is still making losses. This is common for many startups that are investing heavily in growth.
Emcure Pharmaceuticals, headquartered in Pune and backed by investment firm Bain Capital, also got SEBI’s approval for its IPO. The company’s offering will include:
- Fresh issue of equity shares: Emcure Pharma will raise Rs 800 crore (approximately $1.1 billion) by issuing new shares.
- Offer for sale (OFS): Similar to Ola Electric, Emcure Pharma’s promoters and existing shareholders will also sell some of their existing shares, totaling 1.36 crore shares.
The funds raised through the IPO will primarily be used to pay off debt and for general corporate purposes, which could include expanding their business or developing new products.
What This Means for Investors
The upcoming IPOs of Ola Electric and Emcure Pharmaceuticals offer interesting opportunities for investors. It’s crucial to research thoroughly before investing in any IPO.
- Company financials: Look at the company’s financial statements to understand its revenue, profitability, and debt levels.
- Growth prospects: Does the company have a clear plan for future growth?
- Market conditions: Consider the overall health of the stock market and the specific industry the company operates in.
A Look Ahead
With SEBI’s approval, both Ola Electric and Emcure Pharmaceuticals are expected to launch their IPOs in the coming months. These listings will be closely watched by investors and could be a sign of growing investor confidence in Indian startups and pharmaceutical companies.