This Mahindra-backed motorbike company is planning an IPO in India
What's the story
Classic Legends, the Mahindra Group-backed company behind iconic motorcycle brands Yezdi, Jawa, and BSA, is gearing up for a public listing. Anupam Thareja, the company's MD and co-founder, said that the move could happen in 12-18 months. The announcement comes as part of Classic Legends's strategy to establish itself as a credible mid-market global brand.
EV strategy
Electric motorcycle ready but waiting for market
Thareja revealed that Classic Legends has an electric motorcycle ready for launch. However, the company is waiting for the market to be ready, especially in terms of the charging infrastructure. The company's R&D center for electric vehicles in the UK is supported by the British government and is already operational.
Capital requirements
We have ₹875cr of capital, says Thareja
Thareja acknowledged that while Classic Legends will need capital in the future, he doesn't have a desperate need to raise it. He said the company has ₹875 crore of capital and isn't looking to list just for money. However, he didn't rule out the possibility of a listing happening in 12-18 months. "Why not, of course," he said when asked about this timeline.
Market challenges
Issues related to electric bikes
Thareja said Classic Legends is ready with its electric bike but doesn't think the market is ready yet. He explained that long-range batteries are needed for the type of bikes they make, but battery packs are still expensive. There are also multiple issues related to charging infrastructure and availability of retail financing for electric motorcycles.