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India's Ola Electric aims for IPO by year-end, hires Goldman, Kotak

May 27, 2023 00:00:00

MUMBAI, May 26 (Reuters): India's Ola Electric is planning a stock market listing by the end of 2023, and has appointed 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, which makes electric scooters, is backed by investors such as SoftBank Group Corp and Tiger Global Management, and was valued at $5 billion in its last fundraise in 2022.

More investment banks are likely to be added closer to the deal, the source said.

Ola Electric, founded by Bhavish Aggarwal, who also established ride-hailing firm Ola and competes with Uber, is trying to capture India's nascent but promising electric vehicle market.

It sold around 30,000 scooters in April, its highest so far, and is the market leader in the EV scooter space, the person said.

By tapping into the capital markets, the electric two-wheeler startup aims to fuel its ambitious vision of revolutionizing transportation with a clean, green, and futuristic approach. The IPO will infuse Ola Electric with the necessary financial impetus to scale its operations, bolster its market presence, and venture into new frontiers of the electric mobility ecosystem.

The EV scooter company has not finalised how much it plans to raise in the initial public offering (IPO) or what valuation it will seek, but it will aim for a valuation higher than $5 billion, the source said.

If it sells 10 per cent in the IPO -- the minimum legally required to list -- at that price, this could be India's biggest IPO this year amid tepid market conditions.

Filing its draft documents, marketing to investors and listing by the end of the year will be "difficult," the source said, but added that Chief Executive Aggarwal was insistent on the timeline.

A spokesperson from Ola declined to comment. Kotak and Goldman Sachs did not immediately respond to Reuters requests for comment.

Ola recognised as India's most valuable electric two-wheeler startup plans to expand beyond scooters, introducing electric motorcycles and cars. The company also aims to increase investments in cell manufacturing to enhance localization levels, further driving its growth in the EV market.

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