Ola Electric has engaged investment banks Kotak Mahindra Capital and Goldman Sachs for an initial public offering (IPO) in early 2024. The electric mobility startup aims to go public before the government subsidies for electric vehicles are discontinued. This makes Ola Electric one of the few venture capital-backed companies to enter IPO discussions within a six-month timeframe.
The electric mobility startup, backed by some of the world’s biggest private market investors, including SoftBank and Tiger Global, held meetings with several domestic and foreign investment banks in May to initiate preparations for an IPO.
Following these discussions, Kotak Mahindra Capital and Goldman Sachs are currently in advanced talks to be selected as financial advisors, with Kotak closely collaborating with the startup to determine the IPO’s structure, the people said, requesting anonymity. Additionally, Ola Electric plans to appoint at least two more investment banks at a later stage, the people added. The company has also engaged Cyril Amarchand Mangaldas as legal advisor for the IPO, according to the people.
Sources indicate that the IPO planned by Ola Electric will consist of a combination of primary and secondary share offerings. However, the company is currently deliberating on the valuation, considering the volatile and nascent nature of the electric vehicle market. The firm’s founder, Bhavish Aggarwal, who also runs a cab aggregation business Ola, has ambitions of a $10 Billion market capitalisation, people familiar with his thinking said.
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