Ola Electric recently partnered with investment banks Kotak Mahindra Capital and Goldman Sachs to help it prepare for an IPO in early 2024. The electric mobility firm intends to go public before the end of government subsidies for electric automobiles.

For context, on May 23, Nexus Ventures and Westbridge Capital-backed affordable housing company India Shelter had picked i-banks for a Rs 2,000 crore IPO.

According to reports, the electric mobility firm, which is backed by some of the world's largest private market investors, including SoftBank and Tiger Global, met with several local and foreign investment banks in May to begin preparations for an IPO.

Additionally, Ola Electric plans to rope in at least two more investment banks at a later stage. The company has also hired Cyril Amarchand Mangaldas as legal advisor for the IPO.

Ola is planning to establish a new research and development (R&D) facility in Bengaluru named the battery innovation centre, which will span 500,000 square feet. In addition, the company intends to launch a new electric motorcycle. Ola Electric had previously only operated in the electric scooter industry. The timeline, however, is unknown.

According to a few media reports, the IPO will be comprised of both primary and secondary share sales. However, given the uncertain and immature nature of the electric car sector, the company is now deciding on valuation. Bhavish Aggarwal, the firm's creator who also controls the cab aggregation service Ola, intends to reach an USD 10 billion market capitalisation.

The company was last valued at USD 5 billion when it raised USD 200 million in January 2022 from a host of investors, including Tekne Private Ventures and Alpine Opportunity. Ola is among the companies that have raised large amounts of funds in the uncertain macroeconomic environment across the globe. It had raised USD 300 million at a USD 6 billion valuation earlier this week.