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Ola Electric Gets Markets Regulator SEBI’s Nod For Rs 5,500 Crore IPO

Bhavish Aggarwal-led Ola Electric has received the go-ahead from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).

This move marks the first IPO by an electric vehicle (EV) startup in the country.

Ola Electric’s public issue consists of a fresh issue of Rs 5,500 crore and an offer-for-sale (OFS) of 9.51 crore equity shares, according to the draft red herring prospectus.

As part of OFS, Aggarwal will offload 4.7 crore equity shares, and the promoter group, Indus Trust, will sell 41.78 lakh shares.

In December 2023, the EV startup had filed draft IPO papers with SEBI to raise as much as Rs 5,500 crore, including a pre-IPO placement of Rs 1,100 crore.

According to the draft papers, proceeds amounting to Rs 1,226.4 crore will be used for the capital expenditure of its subsidiary, and Rs 800 crore will be used for debt repayment.

Proceeds worth Rs 1,600 crore will be invested in research and product development, while another Rs 350 crore will be utilised for organic growth initiatives, the DRHP mentioned.

Meanwhile, Ola Electric has captured 49 per cent market share in the electric two-wheeler (2W) segment in May, with 37,191 registrations (as per the government’s Vahan portal) riding on its S1 scooter portfolio.
 

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