Ahead of the IPO launch of Ola Electric, founder of the company Bhavish Aggarwal is planning to sell 47.4 million shares in the firm.
Ola Electric IPO is expected to be one of the most-awaited initial public offerings to be issued in 2024. Ola Electric founder Bhavish Aggarwal is planning to sell millions of shares ahead of the issue date, which will be in the early months of 2024.
Read More: How Financial Times has joined legions of media houses feeding into anti-growth biases against India
Softbank-backed Ola Electric, one of the most prominent e-scooter makers in India, filed its preliminary draft papers with SEBI on December 22, which stated that Aggarwal is planning to sell of 47.4 million shares of the company.
The IPO will consist of a fresh issue release of around ₹5500 crore and an Offer For Sale (OFS) of 95,191,195 equity shares at a face value of ₹10. The issue date and price band for the same has not been released by the company yet.
Read More: RBI imposes Rs 2 lakh penalty on TDCC Bank for sanctioning loan to its director
The shares being sold by Bhavish Aggarwal will account for the OFS section of the IPO. The company filings with SEBI said that 75 percent of the IPO is for qualified institutional buyers (QIBs), 15 percent for non-institutional investors (NIIs); and not more than 10 percent for retail individual bidders.
The IPO size of Ola Electric put the valuation of the company at around $7-8 billion by early 2024. It is expected that the IPO will be launched ahead of the 2024 Lok Sabha elections.
Ola Electric IPO: Financial performance and aim
Ola Electric has recorded significant growth over the last fiscal year, and its valuation is expected to see a major spike after the IPO is released. In 2023, Ola Electric saw a major increase in revenue, going from ₹373.42 crore to ₹2,630.93 crore.
Through the money raised in the fresh issue section of the Ola Electric IPO, the company is planning to set aside ₹1,226.4 crore for Ola Cell Technologies’ Gigafactory project. Nealy ₹1600 crore will go towards research and development projects while ₹800 crore will be used to pay debts of the company.
