Ola Electric Secures SEBI Approval for Massive ₹7,500 Crore IPO

Ola Electric, led by Bhavish Aggarwal, gets SEBI's nod for a ₹7,500 crore IPO, including a ₹5,500 crore fresh issue and a 95.2 million share offer for sale, filed in December 2023.
Ola Electric Secures SEBI Approval for Massive ₹7,500 Crore IPO

Ola Electric, led by Bhavish Aggarwal, has received SEBI’s approval for a ₹7,500 crore IPO, consisting of a ₹5,500 crore fresh issue and a 95.2 million share offer for sale. The company filed its draft red herring prospectus (DRHP) on December 22, 2023.

As the first Indian EV two-wheeler maker to file for an IPO, Ola Electric aims to raise funds for capital expenditure, debt repayment, and R&D. The Bengaluru-based company also plans a ₹1,100 crore pre-IPO placement, potentially reducing the fresh issue size.

The DRHP reveals that Aggarwal will sell up to 47.4 million shares, making him the largest seller in the offer for sale. Other stakeholders selling shares include Indus Trusts, Softbank Vision Fund, Matrix Partners, Alpha Wave Ventures, Alpine Opportunity Fund, and Tekne Private Ventures.

Proceeds from the IPO will be used for expanding cell manufacturing at the Ola Gigafactory, debt repayment, and investments in research and product development. Ola Electric seeks a $6 billion valuation through this public offering, reflecting its ambitious growth plans.

In October, Ola Electric was valued at $5.4-5.5 billion after raising $384.43 million. The company reported a 510% revenue increase to ₹2,782 crore in FY23, despite a net loss of ₹1,472 crore. In Q1 2023-24, it reported ₹1,272 crore in income and ₹267 crore in losses.

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