Ola Electric has secured approval from the Securities Exchange Board of India (SEBI) for its initial public offering (IPO). The electric vehicle manufacturer plans to raise INR 7,250 crore, marking a significant milestone for the company.
In December 2023, Ola Electric filed a draft red herring prospectus (DRHP) to raise INR 5,500 crore ($660 million). Bhavish Aggarwal, the largest stakeholder, holds 36.94 percent of the company. Other key stakeholders include SoftBank, which has 21.98 percent; Tiger Global, which has 6.03 percent; Indus Trust, which has 3.85 percent; and Alpha Wave, which has 3.49 percent.
Ola Electricā€™s revenue soared seven-fold to INR 2,631 crore in FY23, though losses increased by 87.76 percent to INR 1,472 crore. The company aims to allocate IPO funds towards capital expenditure (INR 1,226 crore), debt repayment (INR 800 crore), research and development (INR 1,600 crore), and inorganic growth (INR 350 crore).
OLA Electricā€™s Recent Financial Activities
Since filing the DRHP, Ola Electric has raised $62 million in debt, including $50 million from EvolutionX in April. The companyā€™s total funding exceeds $1 billion, with a last reported valuation of $5.5 billion.
Ola Electricā€™s competitor, Ather Energy, is also preparing for an IPO. The market for startup IPOs appears promising in 2024, with several internet companies, including TBO Tech, Digit Insurance, Awfis, and Ixigo, already listed. Companies like FirstCry, Mobikwik, Unicommerce, and Swiggy await regulatory approval.
With SEBIā€™s approval, Ola Electric plans to IPO in early 2024, with Kotak Mahindra Capital and Goldman Sachs as lead managers. Founder Bhavish Aggarwal and initial investors, including AlphaWave, Alpine, DIG Investment, and Matrix, will sell 95.19 million shares via the offer for sale (OFS).
Ola Electricā€™s IPO represents a significant growth trajectory, reflecting its ambition to expand its market presence and technological capabilities.
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