Ola electric to raise Rs.7,250 crore IPO, receives SEBI approval

Ola Electric will utilise the funds for capex, repaying debt, and research and development (R&D).

Published on: Jun 11, 2024, 18:04:44 IST

By HT News Desk | Edited by Abhyjith K. Ashokan

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Electric vehicle maker, Ola Electric has received approval from SEBI for a Rs.7,250 crore IPO (Initial public offering), according to sources who did not wish to be named, Moneycontrol reported.

Ola Electric's S1 Air e-scooters are pictured inside its manufacturing facility in Pochampalli in the southern state of Tamil Nadu (Reuters)

Ola Electric was the first-ever Indian EV two-wheeler maker to file for an IPO. The firm had filed its draft red herring prospectus (DRHP) with the markets regulator on December 22, 2023, according to the article.

Also Read | Ola Electric layoffs: Company to cut 500 jobs, Bhavish Aggarwal ‘reducing costs’

Ola Electric has roped in Kotak Mahindra Capital and Goldman Sachs for an IPO in early 2024, Moneycontrol reported.

The IPO consisted a fresh issue of Rs.5,500 crore and an offer for sale (OFS) of ₹1,750 crore totalling to Rs.7,250 crore. Existing shareholders were said to sell 95.19 million shares in the OFS, as per the firm's DRHP, the article read.

Ola Electric’s founder Bhavish Aggarwal will be selling 47.3 million shares. The firm’s initial investors including AlphaWave, Alpine, DIG Investment, Matrix, and others will also be selling 47.89 million shares via the OFS, according to Moneycontrol.

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As per the DRHP, Ola Electric will utilise the funds for capex, repaying debt, and research and development (R&D). The firm will use around Rs.1,226 crore for capex, and Rs.800 crore to repay debt. It will spend the most, about Rs.1,600 crore, on R&D, and ₹350 crore on inorganic growth, according to the article.

Ola Electric presently dominates the EV two-wheeler market with around 52% market share. According to data from the Government’s VAHAN website, the company registered 34,000 units during the month, marking a growth of 54% year-on-year growth.

Ola Electric has reported consolidated revenues of Rs.2,782 crore, up nearly 510% in the financial year 2022-23, even as its net loss increased to Rs.1,472 crore due to increased expenses.

Also Read | Police nab Ola driver in shootout after he steals woman's bag in Noida

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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