Ola Electric plans to file regulatory papers up to $700 million by October end.

the IPO project is internally codenamed "Project Himalaya".

When a company plans IPO, its shares are sold in a new stock issuance.

In a move that will go a long way in making India’s Ola Electric company public, it plans to file regulatory papers up to $700 million by October end.

An India Today report added that the company – backed by Singapore’s Temasek and Japan’s SoftBank – was valued at $5.4 billion in a recent fund raising.

The publication notes that the IPO project is internally codenamed “Project Himalaya”. It also noted that the memo came with a request to bankers and lawyers: do not plan any “long leaves to ensure availability”.

The electric scooter company, founded by Bhavish Aggarwal, holds a 30% market share in India. It has seen a tremendous rise in its popularity with its push for electric cars and scooters.

What does IPO mean?

When a company plans to go public, it decides to sell its shares to the public in a new stock issuance. For a private company, the IPO is a big move in that it helps it grow and expand better. It is a big step for the company to expand its investor base from just family members, friends among others.

It is also to be noted that there is an increased transparency and greater credibility in share listing through this process of IPO. This will further go a long way as a company seeks borrowed funds.