The Indian markets regulator in June approved Ola's USD 660 million stock market listing, the first IPO by an EV maker in India and set to be one of the country's largest share sales this year.
Ola Electric did not immediately respond to a request for comment.
Ola Electric's last funding round in September, led by Singapore's investment firm Temasek, valued it at USD 5.4 billion, but one of the sources said that would drop this time, pointing to a "recalibration" in the valuation of tech stocks globally.
"Valuations have corrected overall in the market," said the person, adding that the final valuation could still change but is unlikely to come anywhere close to the at least USD 6 billion that Ola Electric's founder Bhavish Aggarwal had hoped to achieve for the IPO.
The second source said Ola Electric's valuation is likely to be lower as "the company wants the IPO to be attractively priced so there is an opportunity for investors to create wealth".
India is seeing a sharp surge in IPOs, with its stock markets near record highs. Benchmark Indian stock indices have doubled between 2019 and 2023.
The country's burgeoning stock market overtook Hong Kong's earlier this year to become the world's fourth-largest. South Korea's Hyundai Motor is also planning to list its India unit, aiming to raise up to USD 3 billion at a valuation of up to USD 30 billion.
Ola Electric was founded in 2017. It dominates the e-scooter market with a 46% share and competes with TVS Motor, Bajaj Auto and Ather Energy.
In December last year, Ola Electric slashed its sales goals for 2023-25 by more than half and delayed its target of achieving profits by a year after reduced government incentives pushed up e-scooter prices.
Its consolidated loss widened to 14.72 billion Indian rupees (USD 176.14 million) for the year ended March 2023, while revenue from operations climbed more than seven times.
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