India’s Ola Electric will hold talks with investors in Singapore and the United States next week over its planned stock listing, two people with direct knowledge of the matter said, the first in a series of meetings ahead of its up to $1 billion (nearly Rs 8,250 crore) IPO.
Ola, which makes electric scooters and is backed by investors including SoftBank and Temasek, plans to raise $600 million (nearly Rs 4,950 crore) to $1 billion in an initial public offering (IPO) in late 2023, sources said.
With its initial public offering (IPO) still some time away, Ola held an investor meeting earlier than usual to explain the business potential of India’s emerging electric vehicle market.
Ola founder and CEO Bhavish Aggarwal will travel to Singapore, the US and the UK in the next two weeks, two sources said. The two sources declined to be named because the plans are confidential.
Agarwal plans to meet with investors including BlackRock, Singapore sovereign wealth fund GIC and mutual funds such as T Rowe Price, the first source said.
“Electric vehicles are still an emerging segment and while there are some similarities globally, in India it is a newer story. So, Bhavesh wants to take the extra time to create comfort for investors,” the first source said.
Ola Electric declined to comment. BlackRock, GIC and T Rowe Price did not respond to Reuters’ requests for comment.
Reuters was the first to report details of Ola’s planned investor meeting.
India is one of the world’s largest auto markets and has a small but fast-growing market for electric vehicles. Ola says it is the market leader in electric scooters in India, selling about 30,000 units per month, each priced at about $1,600 (nearly Rs. 132,000).
Ola Electric is likely to submit regulatory filings for the IPO for approval by August, two sources said.
The investor meeting will focus on Ola’s scooter business, its growth prospects and valuation, which is expected to exceed $5 billion, sources said.
Ola competes with other startups and big players like TVS Motors, Ather Energy and Hero Electric, which are ramping up their e-scooter plans.
The company has appointed Bank of America as one of the lead managers for its IPO, besides Goldman Sachs, Citi and local banks Kotak, Axis and ICICI Securities.
His appointment has not been previously reported by Bank of America, which did not respond to an inquiry seeking comment.
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