Ola Electric Gets SEBI Nod For IPO, Set To Go Public Soon

Bengaluru-based Ola Electric has received market regulator SEBI’s approval to launch its much-awaited initial public offering (IPO) and is anticipated to get listed within a month. Bhavish Aggarwal, Founder of Ola Electric, took to X, to share the news of the upcoming IPO this month, indirectly as SEBI is yet to update formally on this issue.

Ola Electric

Ola Electric is India’s largest electric scooter maker with a market share of 49% in the EV 2W segment. This Bengaluru-based company filed its Draft Red Herring Prospectus in December 2023. As per the filing, the public issue will comprise a fresh issue of Rs. 5500 Cr and an offer for sale (OFS) component of up to 9.51 Cr shares. Therefore, the total size of the Ola IPO amounts to Rs. 7250 Crore. Additionally, founder Bhavish Aggarwal will divest 4.7 crore shares via an OFS. The company has also exercised the option to raise Rs. 1000 crore via pre-IPO placement, which will lead to a reduction in the fresh issue size.

What lies ahead?

In line with this IPO, Ola Electric eyes on 6 Billion Dollar valuation in the Indian Market. The company’s IPO is a mark of new-age IPOs as Ola Electric will become the first pure EV company to be placed on the exchange platform. With the public offerings, Ola Electric plans to establish the Ola Gigafactory initiative. This project will use about Rs. 1226 Cr for capex and Rs. 800 Cr to repay its debt. Furthermore, the project plans to spend Rs. 1600 Cr on R&D and Rs. 350 Cr on inorganic growth. Ola Electric also plans to use a portion of its proceeds for the repayment of loans and to increase its EV portfolio and sales.

Conclusion

With its confirmation of IPO and its listing happening within a month, Ola Electric will come up as one of the most interesting IPOs, this year.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.