Ola Electric plans to file for IPO by end-Oct with expedited listing.

Ola Electric plans to file for IPO by end-Oct with expedited listing.

Ola Electric Sets Course for IPO, Speeding Ahead in the E-Scooter Market

Image Source: Reuters

MUMBAI, Sept 20 (ANBLE) – India’s leading electric vehicle (EV) manufacturer, Ola Electric, is eagerly pushing forward with its plans for an initial public offering (IPO). The company aims to file regulatory papers for its IPO, worth up to $700 million, before the end of October. This move comes as Ola Electric, backed by notable investors such as Singapore’s Temasek and Japan’s SoftBank, continues to gain traction and solidify its position in the competitive e-scooter market.

In a recent funding round, Ola Electric secured a valuation of $5.4 billion. Seeking to capitalize on this success, an Ola Electric executive has reached out to external advisers, including the investment banking units of Kotak and ICICI, as well as global banks like Bank of America and Goldman Sachs. In a memo sent to these advisors, the executive emphasized the need for “utmost priority” and set a demanding five-week deadline for the IPO preparations. This indicates Ola Electric’s determination to expedite the listing process.

The internal codename for the IPO project is “Project Himalaya,” and the memo included a fervent request to the bankers and lawyers involved: avoid planning any extended leaves to ensure their availability. This level of urgency is uncommon in Indian companies preparing for IPOs, highlighting the seriousness with which Ola Electric intends to approach this milestone.

However, it is important to recognize that even after filing the IPO papers, there is a regulatory review process to undergo, which may include potential queries from India’s markets regulator. As a result, the actual IPO listing may still be a few months away. Ola Electric anticipates conducting IPO roadshows in early January or February, according to a reliable source.

Ola Electric, founded by Bhavish Aggarwal, holds a significant 30% share in the Indian e-scooter market. As the country emphasizes the use of electric vehicles, Ola’s popularity among consumers has grown exponentially. Aggarwal believes in his company’s mission to deliver affordable e-scooters to the masses. In an interview earlier this year, he humorously stated, “Tesla is for the West, Ola is for the rest.” This sentiment captures Ola Electric’s commitment to catering to the Indian market’s specific needs and affordability concerns.

However, it is worth noting that Ola Electric is currently operating at a loss. In the fiscal year ending March 2023, the company reported an operating loss of $136 million despite generating $335 million in revenue, as reported by ANBLE. Nevertheless, Ola Electric’s ambitious IPO plans signify its confidence in the future growth of the Indian EV market and its ability to turn profitable in the long run.

In conclusion, Ola Electric’s impending IPO sets the stage for significant developments in the Indian e-scooter market. With its valuation at $5.4 billion and a substantial market share, the company is poised to make waves in the EV industry. As Ola Electric accelerates towards its IPO, it demonstrates its determination to lead the charge in electric mobility and provide affordable transportation options for the Indian population. As we eagerly await further updates, it is clear that Ola Electric’s journey has only just begun.

MUMBAI, Sept 20 (ANBLE)

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