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Ola Electric will hold talks next week with investors in Singapore and the United States about its planned stock market listing, two people familiar with the matter said, in the first of a series of meetings for its up to $1 billion initial public offering.
The sources said Ola, which makes electric scooters and is backed by investors such as SoftBank and Temasek, has plans to raise between $600 million and $1 billion in its initial public offering (IPO), scheduled for late 2023.
With the IPO still some way off, Ola is embarking on investor meetings earlier than usual to explain the commercial potential of India’s nascent electric vehicle market.
said the two sources, who declined to be identified because the plans are confidential.
The first source said Aggarwal plans to meet with investors, including BlackRock, Singapore’s sovereign wealth fund GIC, and mutual funds such as T Rowe Price.
“Electric vehicles are still an emerging niche, and although there are some global parallels, it is a more recent story in India. Bhavish wants to take extra time to put investors at ease,” said the first source.
Ola Electric declined to comment. BlackRock, Gulf Investment Corporation and T Row Price did not respond to Reuters requests for comment. Reuters is the first to report details of the investor meetings scheduled for Ola.
India is one of the largest auto markets in the world with a small but fast growing electric vehicle segment. Ola says it’s India’s market leader in e-scooters, selling around 30,000 a month, with a price tag of around $1,600 each.
The two sources said Ola Electric is likely to submit regulatory papers on the IPO for approval by August.
The sources said that the investor meetings will focus on the business of the Ola Motorcycle Company and its growth prospects and valuation, which is expected to exceed five billion dollars.
Ola is competing with other startups and larger companies like TVS Motors, Ather Energy and Hero Electric, which is ramping up its EV scooter plans.
It also named Bank of America as one of its lead managers for the IPO, as well as Goldman Sachs, Citi, and local banks Kotak, Axis, and ICICI Securities. Bank of America, whose appointment was not previously reported, did not respond to an inquiry seeking comment.
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