Electric vehicle maker Ola Electric has received market regulator Sebi’s nod for its initial public offering wherein the firm is looking to raise Rs 7,250 crore, sources told Moneycontrol.
Ola Electric was the firs-ever Indian EV two-wheeler maker to file for an IPO. The firm filed its draft red herring prospectus (DRHP) with the markets regulator on December 22, 2023.
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On May 25, Moneycontrol was the first to report that Ola Electric has roped in Kotak Mahindra Capital and Goldman Sachs for an IPO in early 2024.
Ola Electric’s IPO comprisesd a fresh issue of Rs 5,500 crore and an offer for sale (OFS) of Rs 1,750 crore totalling Rs 7,250 crore. Existing shareholders were said to sell 95.19 million shares in the OFS, as per the firm’s DRHP.
Ola Electric’s founder Bhavish Aggarwal will be selling 47.3 million shares. The firm’s initial investors — AlphaWave, Alpine, DIG Investment, Matrix, and others will also be selling 47.89 million shares via the OFS.
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The firm is also looking at a re-IPO placement of shares worth Rs 1,100 crore. If this happens, the size of the fresh issue will be reduced to that extent.
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 Rs 350 crore on inorganic growth.
Sebi‘s nod comes at a time when the firm’s ride-hailing Ola Cabs has initiated preliminary discussions with investment banks for a potential launch of an initial public offer (IPO).
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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 percent, in the financial year ended March 2023, even as its net loss widened to Rs 1,472 crore due to increased expenses.
For Q1 2023-24, Ola Electric has reported a total income of Rs 1,272 crore, and losses of Rs 267 crore. The company had a net worth of Rs 2,111 crore as of June 30, 2023.
