Bhavish Aggarwal led Ola Electric, the country's largest two-wheeler manufacturer known for its revolutionising EV (Electric Vehicle) market in India, has received the green light from the market regulator Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).
IPO Details
The Bengaluru-based company, Ola Electric's IPO is a blend of a fresh issue of equity shares worth up to Rs 5,500 crore and an offer for sale (OFS) of 9.52 crore equity shares by promoters and investors.
The company has filed its draft red herring prospectus (DRHP) with SEBI in December 2023, and it is targeting a USD 6-billion valuation through this public offering.
Promoter Bhavish Aggarwal will be offloading 4.7 crore shares, making up half of the total OFS.
IPO/ Representative Image | Freepik
Fund Utilisation
The net proceeds from the fresh issue are marked for several initiatives such as
Capital Expenditure - Investment in the Ola Gigafactory project by the subsidiary OCT.
Debt Repayment - Payment of debt incurred by the subsidiary OET.
Research and Development - Funding for innovation and product development.
Organic Growth - Expenditure on initiatives aimed at scaling operations.
General Corporate Purposes - Overall business growth and management.
About the company
Founded in Bengaluru, the company has become one of the leading name in India's EV sector.
It launched its first EV model, the 'S1 Pro', in August 2021 and now boasts a portfolio of five scooter models.
Within just nine months of delivering its first EV scooter, it emerged as the best-selling electric two-wheeler (E2W) manufacturer in India, based on registrations listed on the VAHAN Portal of the Ministry of Road Transport and Highways.
Financial Performance
For the fiscal year 2023, Ola Electric's revenue from operations skyrocketed to Rs 2,630.93 crore, up from Rs 373.42 crore the previous year.
