Ola Electric, spearheaded by Bhavish Aggarwal, has received the green light from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). This development marks a historic moment as it represents the first IPO by an electric vehicle (EV) startup in India. Ola Electric’s public offering encompasses a fresh issue of Rs 5,500 crore and an offer-for-sale (OFS) of 9.51 crore equity shares, as outlined in the draft red herring prospectus.
The OFS will see Aggarwal divesting 4.7 crore equity shares, while the promoter group, Indus Trust, will offload 41.78 lakh shares. In December 2023, the EV startup submitted draft IPO papers to SEBI aiming to raise a substantial Rs 5,500 crore, which includes a pre-IPO placement of Rs 1,100 crore. According to the draft documents, Rs 1,226.4 crore of the proceeds will be allocated for capital expenditure of its subsidiary, while Rs 800 crore will be earmarked for debt repayment.
Furthermore, a significant Rs 1,600 crore will be invested in research and product development, and another Rs 350 crore will be utilized for organic growth initiatives, as mentioned in the DRHP.
Meanwhile, Ola Electric has secured an impressive 49 per cent market share in the electric two-wheeler (2W) segment in May, registering 37,191 units (as per the government’s Vahan portal) powered by its S1 scooter portfolio. This robust performance underscores Ola Electric’s dominant position in the burgeoning EV market.
