Chennai-based Kabirdass Motor Company, which sells Xite electric scooters, is planning to raise Rs 60 crore through an IPO.

The issue will be open in 45 to 60 days, said Mr Murali Kabirdass, Managing Director.

The fund-raising is primarily meant to set up a manufacturing facility with two-lakh-unit capacity at Sriperumbudur near Chennai. The project cost is Rs 102 crore. A Rs 20-crore loan from Union Bank and Rs 20 crore through equity funding will meet the rest of the project cost. The new facility is expected to be operational in eight to 10 months, said Mr Kabirdass.

The company – which makes four 250-watt scooters and one 1,500-watt scooter – has 33 dealers spread across Tamil Nadu, Karnataka and Andhra Pradesh. Kabirdass Motor plans to expand its dealership network to other States, including Kerala and Maharashtra.

Since its inception in February 2007, the company has sold around 2,000 electric scooters, of which 90 per cent were in rural Tamil Nadu. Mr Kabirdass said the target buyers of its 250-watt variants are teenagers who typically travel less than 20 km a day.

A driving licence is not required to ride this low-power scooter.

Mr Kabirdass said the company is in talks with a few European electric vehicle makers to acquire the licence to manufacture and market their products in India.

The company is also in talks with Exide Industries and Amara Raja, which are developing batteries for electric vehicles. Indian electric vehicle makers depend on Chinese companies for batteries, reports The Hindu Business Line.