Ola Electric IPO: EV maker gets SEBI nod for ₹5,500-crore public issue; check details

Market regulator Securities and Exchange Board of India (SEBI) approved the initial public offering (IPO) of electric two-wheeler maker Ola Electric on Thursday, June 20.

As per the draft red herring prospectus (DRHP) filed in December 2023, the Bengaluru-based company intends to raise ₹5,500 crore through fresh issuance of shares and an offer for sale (OFS) component of 9.52 crore shares.

Under the OFS, Ola Electric CEO Bhavish Aggarwal will divest 47 million shares. Indus Trust, Alpine Opportunity Fund, Kaha Wave Ventures, MacRitchie Investments, Tekne Private Ventures XV, DIG Investment Internet Fund, SVF II Ostrich and Matrix Partners India Investments will also offload their stakes, the DRHP stated.

The funds generated from the issue will be used to repay loans by its subsidiaries to Bank of Baroda and Axis Bank, expand its electric vehicle (EV) portfolio, and expand the capacity of its EV gigafactory.

It will also be used to meet working capital requirements, boost research and development (R&D), and stimulate organic growth.

Axis Capital, Kotak Mahindra Capital Company, ICICI Securities, BofA Securities India, Goldman Sachs (India) Securities, SBI Capital Markets, BOB Capital Markets and Citigroup Global Markets India are the book-running lead managers to the offer.

About Ola Electric

Ola Electric manufactures EVs and core EV components like battery packs, vehicle frames, and motors. Its offerings include electric two-wheelers like the Ola S1 Pro, Ola SI, Sola Si Air, and Ola S1 X+. It has also announced a line-up of motorcycles comprising four models: Adventure, Diamondhead, Cruiser, and Roadster.

The company dominated the domestic EV market with a 52% share as of April 2024. In the same month, it registered 34,000 EVs, the government's VAHAN website stated.

In the financial year 2022-23, Ola Electric had reported a 510% jump in consolidated profit to ₹2,782 crore in comparison to previous fiscal. However, net loss widened to ₹,1472 crore during the same period.

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