Classic Legends IPO Possible in 12-18 Months

Mumbai, Aug 17 (PTI) The public listing of Mahindra group-backed Classic Legends, the maker of iconic brands Yezdi, Jawa and BSA, is a reality, and a timeline of 12-18 months is a possibility, as it seeks to create a credible mid-market global brand, according to its MD and co-founder Anupam Thareja.

The company -- which has an R&D centre for electric vehicles in the UK, supported by the government there -- is ready with its electric motorcycle, but will launch it only when the market is ready, especially in terms of charging infrastructure, he told PTI.

When asked if a public listing of Classic Legends is on the distant horizon, Thareja said, "Not at all. In fact, you will be happy and surprised that we just gave stock options...We also have investors in this company. So listing is a reality, and it has nothing to do with unlocking shareholder value. It is the way this is constructed. This is a global company we are creating".

Stressing that the company chose to launch the BSA brand first in the UK and then in India, he said, "That is audacity, that is the belief (that we have)...the world needs a credible mid-market motorcycle brand..."

He further said,"...we (will) need capital in the future, but should we have a listed vehicle? 100 per cent and that's not in the distant future by the way".

When asked if the listing can happen in the next 12-18 months, Thareja said, "I don't have the desperate need to raise capital. We are sitting on Rs 875 crore of capital. So, I'm not going to do it just for money, but will it happen in 12 to 18 months? Why not, of course".

On the company's electric vehicle plans, Thareja said, "We are ready with our (electric) bike, we can launch as soon as we want, but I don't think the market is ready".

Elaborating, he said, for the type of bikes Classic Legends is into, long range (battery) is required, but battery packs are still expensive, and there are multiple issues related to charging infrastructure and availability of retail financing for electric motorcycles.

He said electric adoption in two-wheelers will be first seen in scooters, followed by commuters, and the premium 'classics' segment is expected to be the last.

Thareja said Classic Legends has "had a very deep relationship" with the UK government, which gave the company 50 per cent grant, under which "whatever money we put they will give us equal money as a grant to set up an electric R&D unit in the UK. That is running and we have an engineering segment in Coventry, which is making electric bikes".

There is a very high probability that the UK will be the first market where the electric bike will be first launched, he said without disclosing details.