Ola Electric to raise $734 mln in India's biggest IPO this year
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Ola Electric to raise $734 mln in India's biggest IPO this year
MUMBAI (Reuters) - Indian e-scooter maker Ola Electric said on Monday it aimed to raise $734 million in the country's biggest IPO this year, a deal set to lure major foreign investors and highlight growing confidence in India's financial markets.
A stock market boom has already led more than 150 Indian companies to raise nearly $5 billion through public listings in the country between January and July, nearly double the figure for the same period last year, LSEG data shows.
The first IPO by an Indian electric vehicle maker will let investors bet on a clean energy push by Prime Minister Narendra Modi's government, as well as firms from Tata Motors (TAMO.NS), opens new tab and TVS Motor (TVSM.NS), opens new tab to Hyundai Motor (005380.KS), opens new tab.
"Our mission is to really make India a global EV hub," Ola's chairman Bhavish Aggarwal told reporters at a press conference in Mumbai, where he posed for photographs sitting on his e-scooters that start retailing at $900.
SoftBank-backed Ola Electric has become the biggest player in a country where adoption of clean vehicles is still low, but rising rapidly. It had 46% of the e-scooter market as of June 30 despite slashing sales goals last year.
"Tesla is for the West and Ola for the rest," has become a catchphrase linked to Aggarwal, who is betting big on cleaner vehicles.
Aggarwal had plans to start selling an electric car in 2024, but Reuters reported they have been suspended to let the company focus on e-scooters and EV battery cells. It also plans a foray into electric bikes.
