Indian electric scooter manufacturing giant, Ola Electric, plans to engage with investors in Singapore and the United States to discuss its anticipated initial public offering (IPO) over the next week.
What Happened? According to a Reuters report, the company aims to raise between ₹4,945 crore and $1 billion through this IPO, scheduled for early 2024.
The company is starting investor meetings earlier than usual to elaborate on the potential of India’s budding electric vehicle (EV) market. Bhavish Aggarwal, Ola’s founder and CEO, will visit Singapore, the U.S., and the U.K. over the coming two weeks to meet potential investors. These include BlackRock, Singapore’s sovereign wealth fund GIC, and mutual funds like T Rowe Price.
Ola aims to reassure investors about the future of EVs in India, a relatively new yet fast-growing segment in one of the world’s largest automotive markets. With Ola selling about 30,000 e-scooters a month at approximately ₹1.32 lakh each, it claims market leadership in India’s e-scooter segment.
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The company intends to file IPO regulatory papers for approval by August. During the investor meetings, discussions will centre on Ola’s scooter business, growth prospects, and expected valuation, anticipated to exceed ₹41,217 crore.
Ola faces competition from start-ups and established companies like TVS Motors, Ather Energy, and Hero Electric, all of which are accelerating their EV scooter initiatives. For the IPO, Ola has appointed Bank of America as one of its lead managers, alongside Goldman Sachs, Citi, and local banks like Kotak, Axis, and ICICI Securities.
Read next: What Is Ola Share Price And How To Buy?
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