Ola Electric, an Indian electric scooter manufacturer backed by investors such as SoftBank and Temasek, is making preparations for its initial public offering (IPO) with plans to raise between $600 million and $1 billion. The company is scheduled to hold talks with investors in Singapore and the United States next week as part of a series of meetings leading up to its IPO, which is expected to take place in late 2023.
In an effort to showcase the potential of India’s nascent electric vehicle (EV) market, Ola’s founder and CEO, Bhavish Aggarwal, will travel to Singapore, the United States, and the United Kingdom over the next two weeks. Among the investors Aggarwal plans to meet are BlackRock, GIC (Singapore’s sovereign wealth fund), and mutual funds like T Rowe Price.
According to one source, the purpose of these early investor meetings is to familiarize potential investors with the EV space, which is still emerging and relatively new in India. Ola Electric aims to create a sense of confidence and comfort among investors before its IPO.
While Ola Electric declined to comment on the matter, neither BlackRock, GIC, nor T Rowe Price responded to requests for comments from Reuters.
India’s automotive market is one of the largest globally, with a growing segment for electric vehicles. Ola claims to be the market leader in India’s e-scooter sector, selling approximately 30,000 units per month at an average price of $1,600 each.
Ola Electric is expected to file regulatory papers for its IPO approval by August. The investor meetings will primarily focus on Ola’s scooter business, its growth prospects, and its anticipated valuation, which is projected to exceed $5 billion.
Ola Electric faces competition from other startups as well as established companies like TVS Motors, Ather Energy, and Hero Electric, all of which are expanding their electric scooter plans.
In addition to Goldman Sachs, Citi, and local banks Kotak, Axis, and ICICI Securities, Ola Electric has appointed Bank of America as one of its lead managers for the IPO, although this appointment had not been previously reported. Bank of America did not respond to requests for comment.
