India's leading e-scooter manufacturer, Ola, faces resistance from investors regarding the valuation of its upcoming IPO.

Ola Electric Mobility Ltd., India's leading electric scooter manufacturer, is encountering resistance from investors over its proposed valuation for its upcoming initial public offering (IPO), according to sources familiar with the matter. The company's founder is aiming for a valuation of up to $7 billion in the Mumbai listing, while initial feedback from investors suggests a valuation closer to $5 billion. Current investors in Ola Electric may opt not to sell their shares at the $5 billion valuation. Deliberations are ongoing, and no final decisions have been made. A representative for Bengaluru-based Ola Electric did not immediately respond to a request for comment.

Ola Electric’s prospectus, supported by SoftBank Group and Tiger Global Management, indicates plans to raise $659 million through the sale of new shares in the IPO. The company's IPO plans were approved on Thursday by India’s market regulator. The electric scooter maker’s IPO comes at a time when India’s equity capital markets are flourishing in Asia. Financiers are optimistic about more activity following the resolution of potential uncertainties related to the country’s elections and continued strong expectations for economic growth.

The IPO is part of Ola Electric's ambitious strategy to expand into battery-powered vehicles and EV cells. Founder Bhavish Aggarwal is building what he claims will be the world’s largest electric vehicle hub in southern India, focusing on the production of lithium-ion cells, cars, and battery-powered two-wheelers. The startup has also introduced electric motorcycles.