Ola Electric Hires Goldman And Kotak For IPO Oversight, Aims For India's Largest Listing

India's Ola Electric has reportedly chosen investment bank Goldman Sachs and domestic bank Kotak to oversee its upcoming stock market listing, scheduled for the end of 2023. A source familiar with the situation shared this information with Reuters.

Ola Electric, renowned for its production of electric scooters, boasts notable backing from prominent investors including SoftBank Group Corp (9984.T) and Tiger Global Management. In its most recent funding round in 2022, the company garnered a valuation of $5 billion.

According to the source, more investment banks are expected to be added as the transaction approaches. Moneycontrol, a local business website, initially revealed the IPO intentions earlier in the day.

Ola Electric, founded by Bhavish Aggarwal, who also launched Ola and competes with Uber (UBER.N), is attempting to grab India's small but promising electric vehicle market.

It sold around 30,000 scooters in April, marking its highest sales figure to date, according to a statement by an industry insider. The company dominates the EV scooter market and holds the position of market leader.

As for its plans for an initial public offering (IPO), the EV scooter company has yet to finalize the amount it intends to raise or the desired valuation. However, the source mentioned that the company aims for a valuation exceeding $5 billion.

Considering a minimum of 10% of its shares being sold in the IPO to meet legal requirements for listing, this offering has the potential to become India's largest IPO of the year, despite the subdued market conditions.

Filing its draught documents, marketing to investors, and listing before the end of the year will be "difficult," according to the source, who added that Chief Executive Aggarwal was adamant about meeting the deadline.

Ola's representative declined to comment. Reuters queries for comment were not immediately responded to both Kotak and Goldman Sachs.