The company is eyeing a listing on the exchanges within a month, a source told Inc42
Ola Electric filed its draft red herring prospectus with the markets regulator in December last year
As per the DRHP, the public issue will comprise a fresh issue of INR 5,500 Cr and an offer for sale (OFS) component of up to 9.51 Cr shares
Bhavish Aggarwal-led two-wheeler electric vehicle (EV) manufacturer Ola Electric
has received the nod from the Securities and Exchange Board of India (SEBI) for its much-awaited initial public offering (IPO), company sources told Inc42.
The company received the approval earlier in the day today and is eyeing a listing on the exchanges within a month, one of the sources said.
Official confirmation from the markets regulator is expected soon. As per the last update from SEBI on June 7, Ola Electric’s DRHP was under process.
Ola Electric filed its draft red herring prospectus (DRHP) with the markets regulator in December last year. As per the DRHP, the public issue will comprise a fresh issue of INR 5,500 Cr and an offer for sale (OFS) component of up to 9.51 Cr shares.
Founder and CEO Aggarwal and investors like SoftBank, Temasek, Tiger Global, Alpha Wave, Tekne Capital and Matrix Partners are among those who will sell shares via the OFS.
The company’s public issue will be the first IPO by any EV maker in India and first by any automaker in the last 20 years.
Ola Electric plans to use the proceeds from the IPO to set up its Ola Gigafactory project — targeting 100 GWh capacity for battery production at full scale — to manufacture EVs, batteries and other components.
Additionally, Ola Electric will deploy a portion of the funds for research and product development, organic growth and general corporate purposes, including paying off some debt raised by Ola Electric.
In the financial year 2022-23 (FY23), Ola Electric’s net loss widened 88% to INR 1,471.6 Cr from INR 783.4 Cr in the previous fiscal year. Sales surged 605% to INR 2,630.9 Cr from INR 373 Cr in FY22.
Meanwhile, the startup reported sales of INR 1,242.7 Cr in the first three months of FY24.
Ola Electric continues to lead the Indian two-wheeler EV space with close to 50% market share.
Earlier this month, a report said that the startup is planning to sack nearly 400-500 employees to cut costs and streamline operations. Meanwhile, Ola Electric has raised a debt of INR 100 Cr ahead of the IPO.
