Ola Electric Fast Tracks IPO Plans, To File DRHP By October-End

Bhavish Aggarwal-led Ola Electric, which was looking to go public in 2024, has reportedly fast tracked its public listing plans and is looking to file the draft red herring prospectus (DRHP) for its $700 Mn IPO before the end of October.

An Ola Electric executive recently asked external advisers on the IPO, including the investment banking units of Kotak, ICICI, and foreign banks, including Bank of America and Goldman Sachs, to give “utmost priority” to meet a five-week deadline, Reuters reported citing sources.

As per a source, the escooter major is targeting its IPO roadshows for early January or February next year.

Ola Electric was not immediately available to respond to Inc42’s query on the development.

Earlier this year, Ola Electric began talks with banks, including Kotak, Citibank, and Goldman Sachs, for the public offering.

As per the news agency, the electric vehicle (EV) startup’s IPO project is internally named “Project Himalaya”, and the memo came with a request to bankers and lawyers: do not plan any “long leaves to ensure availability”.

In the normal course of procedure, once the DRHP is filed, it is reviewed by the markets regulator the Securities and Exchange Board of India (SEBI) before the company receives a nod to float the IPO.

As per earlier reports, Ola Electric was eyeing a market capitalisation of $10 Bn from its IPO. However, valuation experts told Inc42 that such a valuation was not realistic and sustainable.

Ola Electric is moving ahead with its IPO plans despite Aggarwal’s ride-hailing startup Ola Cabs deferring its IPO in 2022.

Despite facing multiple allegations pertaining to its escooter quality, after-sales services, and misappropriation of FAME-II subsidies, Ola Electric has grown to become the highest-selling electric two-wheeler manufacturer in the past few months.

Besides its escooter offerings, Aggarwal has also been aggressively announcing its new product lines. The startup is aiming to come out with its electric motorcycles and electric cars.

On the other hand, Ola Electric is also working on its cell production and factory. The construction of Ola gigafactory commenced recently at Krishnagiri in Tamil Nadu.

Recently, the startup reportedly raised $140 Mn in a funding round led by Singapore’s sovereign wealth fund Temasek, valuing the company at $5.4 Bn.

While the company is yet to file its FY23 financial statement, Ola Electric’s operating loss reportedly stood at $136 Mn on revenue of $335 Mn in FY23, missing its publicly disclosed revenue goal.