Ola Electric Receives SEBI Approval To Float IPO

The Securities and Exchange Board of India has given its go-ahead for the initial public offering of Ola Electric Mobility Pvt.

The Bhavish Aggarwal-led company's public issue consists of a fresh issue of Rs 5,500 crore and an offer-for-sale of 9.51 crore equity shares, according to the draft red herring prospectus. As part of the offer-for-sale, Aggarwal will offload 4.7 crore equity shares, and the promoter group, Indus Trust, will sell 41.78 lakh shares.

In December last year, the Bengaluru-based electric vehicle startup had filed draft IPO papers with the markets regulator to raise as much as Rs 5,500 crore, including a pre-IPO placement of Rs 1,100 crore.

The book-running lead managers for the issue are Kotak Mahindra Capital Co., BofA Securities India Ltd., Axis Capital Ltd., SBI Captial Markets Ltd. Citigroup Global Markets India Pvt., Goldman Sachs (India) Securities Pvt., ICICI Securities Ltd. and BOB Capital Markets Ltd.

As per the draft papers, proceeds worth Rs 1,226.4 crore will be used for capital expenditure of its subsidiary, while Rs 800 crore will be used for repayment of debt.

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

Ola Electric has so far raised nearly $1 billion. As on Dec. 6, 2023, it had a valuation of $5.49 billion.

With a manufacturing facility in Krishnagiri, Ola Electric manufactures EVs and core EV components, such as battery packs and motors at Ola Futurefactory.

The company is in the process of building an EV hub in the Krishnagiri and Dharmapuri districts in Tamil Nadu, which includes the Ola Futurefactory, the upcoming Ola Gigafactory, and co-located suppliers in Krishnagiri district.

The capital market regulator has also given its nod for the IPO of Emcure Pharmaceuticals Ltd.