Ola Electric Likely To File For IPO To Raise Up To $700 Million By October End; Details Here

Ola Electric is planning to file regulatory papers to raise up to $700 million via initial public offering (IPO) before the end of October, three people aware of the matter were quoted as saying by Reuters.

Also read: Reliance Industries Share Price Falls 3%, Extends Losing Streak For Fourth Consecutive Day

With support from investors such as Temasek from Singapore and SoftBank from Japan, Ola Electric recently achieved a valuation of $5.4 billion in its latest fundraising round.

According to sources, an Ola Electric executive sent an email on Sunday to the company's bankers and legal representatives, urging external advisors involved in the IPO process, including the investment banking divisions of Indian firms Kotak and ICICI, as well as international banks like Bank of America and Goldman Sachs, to accord the highest priority in order to meet a stringent five-week deadline.

The sources further revealed that Ola’s IPO project is internally codenamed "Project Himalaya", and the memo came with a request to bankers and lawyers: do not plan any ”long leaves to ensure availability”

Ola Electric is targeting to hit the public market early January or February, it said further. It is to be noted that once the draft papers are filed, it will be reviewed by India’s markets regulator who can also send queries, indicating any possible listing is still some months away. 

The company, a dominant player in the Indian e-scooter market with a 30% market share, was established by Bhavish Aggarwal. Its popularity has surged alongside India's push for increased adoption of electric cars and scooters.

Aggarwal has emphasized that his affordable e-scooters, priced starting at $1,080, are intended for the masses. In a recent interview, he succinctly expressed this notion, stating, "Tesla is for the West, Ola is for the rest."

Also read: Whatsapp Users Can Now Pay Businesses Using Credit Cards And Other UPI Apps; All You Need To Know About New Payment Feature

Despite its growing popularity, Ola Electric continues to incur losses. According to Reuters, the company reported an operating loss of $136 million against a revenue of $335 million for the fiscal year ending in March 2023.