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Ola Electric, a prominent e-scooter manufacturer in India valued at $5.4 billion, is expediting its initial public offering (IPO) plans, aiming to submit regulatory documents for a potential $700 million IPO by the close of October, according to sources familiar with the matter.
Backed by investors like Singapore’s Temasek and Japan’s SoftBank, Ola Electric is determined to fast-track its listing move. In an email addressed to its banking and legal partners, an Ola Electric executive stressed the “utmost priority” of meeting a tight five-week deadline for the IPO process. Among the advisors involved are Kotak and ICICI’s investment banking units, along with international banks such as Bank of America and Goldman Sachs.
While Ola Electric and Kotak refrained from commenting, the other three banks chose not to respond. The sources requested anonymity as the communication was internal.
Internally named “Project Himalaya,” Ola’s IPO initiative has a unique request for its bankers and legal experts: refraining from planning extended leaves to ensure their availability. Such directives are unusual in the context of Indian IPOs.
Once the IPO documents are filed, India’s market regulator will review them and may raise queries. This implies that the IPO listing is still a few months away.
Ola Electric is strategizing IPO roadshows for early January or February, as revealed by one of the sources.
The company has gained prominence as India’s leading e-scooter player, capturing a substantial 30% market share. Founded by Bhavish Aggarwal, Ola Electric is thriving amid India’s growing emphasis on electric vehicles. Aggarwal has positioned his affordable e-scooters, starting at $1,080, as vehicles designed for the masses, distinct from Tesla, which he characterizes as catering primarily to the Western market.
However, it’s important to note that Ola Electric has not yet achieved profitability, with reported operating losses of $136 million on revenue of $335 million for the fiscal year ending March 2023, according to Reuters.
