Ola Electric, an Indian electric scooter manufacturer, is preparing for its much-anticipated stock market debut by the end of 2023. The company has enlisted the services of investment bank Goldman Sachs and domestic bank Kotak Mahindra Bank to manage the share sale, according to a source familiar with the matter.
With notable backers such as SoftBank Group and Tiger Global Management, Ola Electric achieved a valuation of $5 billion (approximately Rs. 41,375 crore) during its previous funding round in 2022. As the company seeks to tap into India’s burgeoning electric vehicle market, it aims to surpass this valuation in its IPO, although the exact fundraising target has not been finalized.
While additional investment banks are expected to join the deal closer to the IPO, the involvement of Goldman Sachs and Kotak represents a significant step towards a successful listing.
Ola Electric was founded by Bhavish Aggarwal, who is also the brain behind the ride-hailing giant Ola, a competitor to Uber. Aggarwal envisions capturing India’s nascent yet promising electric vehicle market with the company’s range of electric scooters.
Given the current market conditions, launching the IPO and completing the necessary procedures, including filing draft documents and marketing to investors, by the end of the year may prove challenging. However, Chief Executive Bhavish Aggarwal remains steadfast in his commitment to meet the proposed timeline, according to the source.
If Ola Electric manages to sell the minimum required 10 percent stake in the IPO at a valuation exceeding $5 billion, it could potentially become India’s largest IPO of the year. This achievement would come amidst relatively tepid market conditions.
When approached for comments, an Ola spokesperson declined to provide additional details, while Goldman Sachs and Kotak were yet to respond to Reuters’ requests for comment.
As the demand for sustainable transportation continues to grow, Ola Electric’s IPO holds significant promise for investors looking to capitalize on India’s shifting automotive landscape. With its solid backing from prominent investors and Bhavish Aggarwal’s track record of success, Ola Electric is poised to make a considerable impact in the electric vehicle sector, further accelerating the country’s transition to cleaner and greener mobility solutions.