Ola Electric IPO: SEBI nod received for ₹7,250 crore public issue, say reports. Details here

Ola Electric, the electric vehicle arm of cab aggregator giant Ola, has received nod from the Securities and Exchange Board of India (SEBI) to raise ₹7,250 crore via an initial public offering (IPO), reports said on Tuesday, June 11.

An official confirmation from SEBI, as well as Ola Electric, was awaited by the time the preliminary reports emerged.

India's first EV maker to launch IPO

Ola Electric will be the first EV manufacturer of India to raise funds via an initial public offering. The company had filed the draft red herring prospectus (DRHP) with the SEBI in December 2023.

The IPO will comprise a fresh issuance of shares worth ₹5,500 crore, and offer-for-sale (OFS) component to raise another ₹1,750 crore.

As part of the OFS, a total of 95 crore shares of face value of ₹10 each would be offloaded. Aggarwal would be selling 47.4 million shares he holds in the company. Another 47.89 million shares would be sold by initial investors including AlphaWave, Alpine, DIG Investment, and Matrix.

IPO aimed at boosting capex, R&D

According to the DRHP, Ola Electric aims to raise funds for capital expenditure, boosting research & development (R&D), debt repayment and inorganic growth.

The company aims to utilise the most, ₹1,600 crore, for R&D, followed by ₹1,226 crore for capex, ₹800 crore for debt repayment and ₹350 crore for fueling inorganic growth.

Ola Electric financial performance

In the fiscal year ended March 2023, Ola Electric had logged a consolidated revenue of ₹2,782 crore, which was 510% as compared to FY22. However, its net loss during the year widened to ₹1,472 crore on account of a jump in expenditure.

As of June 2023, the net worth of Ola Electric stood at ₹2,111 crore.

The company holds the lion's share of 52% in the domestic EV market, as per the data available for April 2024. During the same month, it registered 34,000 electric vehicles, according to the government's VAHAN website. This was up 54% as compared to the year-ago period.