Ola Electric, founded by Bhavish Aggarwal, which intended to list on the stock market in 2024, has reportedly accelerated those preparations and intends to submit the draft red herring prospectus (DRHP) for its $700 million initial public offering (IPO) by the end of October.
According to sources cited by Reuters, an Ola Electric executive recently requested “utmost priority” from the investment banking divisions of Kotak, ICICI, and foreign banks, including Bank of America and Goldman Sachs, to meet a five-week deadline.
The big e-scooter company plans to hold its roadshows for its IPO in early January or February of next year, according to a source.
Ola Electric was unavailable to react to Inc42’s inquiry about the development right away. Ola Electric started talking to banks earlier this year about the IPO, including Kotak, Citibank, and Goldman Sachs.
Project Himalaya: Ola Electric’s IPO project
According to the news agency, the IPO project for the electric vehicle (EV) firm is internally referred to as “Project Himalaya,” and the message included a directive to bankers and attorneys asking them not to schedule any “long leaves to ensure availability.”
The Securities and Exchange Board of India (SEBI), the market regulator, reviews the DRHP after it is submitted in accordance with the standard process before giving the business permission to float the IPO.
According to earlier estimates, Ola Electric aimed to raise $10 billion through its IPO. However according to valuation experts, Inc42’s valuation was unrealistic and unsustainable. Despite Aggarwal’s ride-hailing startup Ola Cabs postponing its IPO in 2022, Ola Electric is continuing with its ambitions for an initial public offering.
Ola Electric has become into the most popular maker of electric two-wheelers in recent months despite facing numerous claims regarding the quality of its escooters, after-sales services, and theft of FAME-II subsidies.
Aggarwal has been aggressively advertising its additional product lines in addition to its escooter products. The startup wants to release its electric automobiles and electric motorcycles.
Ola Electric, on the other hand, is also improving its manufacturing and cell output. At Krishnagiri in Tamil Nadu, work has recently begun on the Ola gigafactory. According to reports, the startup just secured $140 million in capital from Temasek, the national wealth fund of Singapore, valuing the business at $5.4 billion.
Although Ola Electric has not yet submitted its FY23 financial statements, the company’s operational loss was reported to have been $136 million on $335 million in revenue, falling short of its previously stated revenue target.
