Ola Electric gets SEBI nod for Rs 7,250 crore IPO

12 Jun 2024 , 10:02 AM

Electric vehicle maker Ola Electric has received SEBI’s approval for its IPO, aiming to raise ₹7,250 Crore.

Ola Electric, the first Indian EV two-wheeler maker to file for an IPO, submitted its draft red herring prospectus (DRHP) on December 22, 2023.

The IPO includes a fresh issue of ₹5,500 Crore and an offer for sale (OFS) of ₹1,750 Crore. Existing shareholders will sell 95.19 million shares in the OFS, according to the DRHP. Founder Bhavish Aggarwal will sell 47.3 million shares, and initial investors like AlphaWave, Alpine, DIG Investment, Matrix, and others will sell 47.89 million shares.

The company is also considering a pre-IPO placement of ₹1,100 Crore, which would reduce the fresh issue size accordingly.

According to the DRHP, Ola Electric will use the funds for capex, debt repayment, and R&D. About ₹1,226 Crore will go towards capex, ₹800 Crore to repay debt, ₹1,600 Crore for R&D, and ₹350 Crore for inorganic growth.

Ola Electric currently dominates the EV two-wheeler market with a 52% share, registering 34,000 units in the latest month, a 54% year-on-year growth, as per VAHAN data.

For FY23, Ola Electric reported consolidated revenues of ₹2,782 Crore, up nearly 510%, despite a net loss of ₹1,472 Crore due to increased expenses. In Q1 2023-24, the company reported a total income of ₹1,272 Crore and losses of ₹267 Crore, with a net worth of ₹2,111 Crore as of June 30, 2023.