Ola Electric Secures SEBI Approval for Upcoming IPO
Electric two-wheeler company Ola Electric has received capital markets regulator Sebi's clearance to raise funds through an initial public offering (IPO) -- the first issue by an automaker in the country in more than 20 years, people familiar with the matter said on Tuesday. The proposed IPO is a combination of a fresh issue of equity shares up to Rs 5,500 crore and an offer for sale (OFS) of 9.52 crore equity shares by promoters and investors, according to the draft red herring prospectus (DRHP).
The Bengaluru-based company, which filed preliminary IPO papers with Sebi in December 2023, has now obtained its nod to float the public issue, they added.
Going by the draft papers, proceeds from the fresh issue will be used for capital expenditure to be incurred by the subsidiary OCT for the Ola Gigafactory project, payment of debt by subsidiary OET, investment into research and product development, expenditure for organic growth initiatives, and general corporate purposes.
Ola Electric manufactures EVs and core EV components, such as battery packs and motors at Ola Futurefactory -- manufacturing facility in Krishnagiri.
The company is in the process of building an EV hub in the Krishnagiri and Dharmapuri districts in Tamil Nadu, which includes the Ola Futurefactory, the upcoming Ola Gigafactory, and co-located suppliers in Krishnagiri district.
It introduced its first EV model 'S1 Pro' in August 2021 and currently has a portfolio of 5 scooter models. Within nine months of Ola Electric delivering its first EV scooter, it has become the best-selling E2W player in India based on E2W registrations listed on the VAHAN Portal of the Ministry of Road Transport and Highways.
For the fiscal year 2023, its revenue from operations jumped more than seven times to Rs 2,630.93 crore against Rs 373.42 crore a year ago. Kotak Mahindra Capital Company, Citigroup Global Markets India, BofA Securities India, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, SBI Capital Markets, and BOB Capital Markets are the book-running lead managers to the offer. The equity shares are proposed to be listed on the BSE and NSE.
