Ola Electric, an electric scooter manufacturer, is backed by investors including SoftBank Group Corp and Tiger Global Management and was valued at $5 billion in its last fundraising in 2022
Indian company Ola Electric plans to list by the end of 2023 and has hired investment bank Goldman Sachs and domestic bank Kotak to manage the share sale, a source with direct knowledge of the matter told Reuters.
Ola Electric, an electric scooter manufacturer, is backed by investors including SoftBank Group Corp and Tiger Global Management and was valued at $5 billion in its last fundraising in 2022.
The source said more investment banks are likely to be brought in to get closer to the deal. Local company website Moneycontrol first reported on the IPO plans earlier in the day.
Ola Electric, founded by Bhavish Aggarwal, who founded ride-hailing company Ola and competes with Uber, is trying to capture India’s burgeoning but promising electric vehicle market.
The company sold around 30,000 scooters in April, its highest level to date, and is the market leader in electric scooters, the person said.
The electric scooter company has not yet finalized how much it plans to raise from its initial public offering (IPO) and what valuation it will target. Still, it will target a valuation above $5 billion, the source said.
If the company sells 10 percent of the legal minimum listing price at the IPO, it could be India’s largest IPO this year given the tepid market conditions.
Filing the draft documents, marketing them to investors and listing them on the stock market by the end of the year will be “difficult”, the source said, but adding that Chief Executive Aggarwal insisted on the timeline.
A spokesman for Ola declined to comment. Kotak and Goldman Sachs did not immediately respond to Reuters’ request for comment.
(REUTERS)
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