Ola Electric, the Indian e-scooter manufacturer, is expediting its plans for an initial public offering (IPO) worth up to $700 million and intends to submit the necessary regulatory documents before the end of October, according to three individuals with direct knowledge of the matter.
Backed by investors such as Singapore's Temasek and Japan's SoftBank, Ola Electric garnered a valuation of $5.4 billion in a recent fundraising round.
In a message sent to its banking and legal advisers on Sunday, a senior Ola Electric executive urged the external advisors responsible for the IPO, which include the investment banking divisions of Indian banks Kotak and ICICI, as well as international institutions like Bank of America and Goldman Sachs, to accord "utmost priority" to meet a tight five-week deadline, as per the sources.
While Ola Electric and Kotak chose not to respond to requests for comments, the other three banks declined to comment. The sources chose to remain anonymous due to the confidential nature of the communication.
Ola's IPO initiative goes by the internal codename "Project Himalaya," and the communication included a request to bankers and lawyers: they should refrain from planning "extended leaves to ensure their availability," as stated by the sources.
It is worth noting that IPO-bound Indian firms typically do not instruct senior bankers and lawyers to abstain from taking leaves, according to the sources.
After the IPO documents are submitted, they will be reviewed by India's market regulator, who may also issue inquiries, implying that a potential listing is still several months away.
Ola Electric is aiming to hold IPO roadshows in early January or February, according to one of the sources.
Founded by Bhavish Aggarwal, Ola Electric is India's leading e-scooter provider, with a 30% market share. Its popularity has surged as India promotes the use of electric vehicles, particularly electric cars and scooters.
Aggarwal has emphasized that his affordable e-scooters, which start at a retail price of $1,080, are designed for the masses, distinguishing Ola as "for the rest," with Tesla catering to Western markets.
However, Ola Electric is still incurring losses. In the fiscal year ending in March 2023, the company reported an operating loss of $136 million on revenue of $335 million, as previously reported by Reuters.
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