Ola Electric Files For IPO, A First By An Indian Auto Company In 20 Years
The company will issue fresh stock worth Rs 5,500 crore, while existing investors plan to sell 9.52 crore shares.
The Bhavish Aggarwal-founded Ola Electric Mobility Pvt. has filed its draft red herring prospectus with SEBI for an initial public offering on Friday.
Ola Electric's IPO is a combination of an issue of new shares and an offer for sale. The fresh issue component is worth Rs 5,500 crore, while the offer for sale is for 9.52 crore shares, according to the DRHP.
Aggarwal is set to offload up to 4.73 crore shares in the offer for sale, with Tiger Global and SoftBank among the other selling shareholders.
People aware of the matter had earlier told NDTV Profit that the company was set to file for its IPO with the markets regulator
Ola Electric's offering is set to be the first IPO by an auto company in 20 years, and it will be the first pure-play EV company to list on Indian bourses.
Earlier in November, Ola Electric had converted to a public company from a private firm. It had also raised as much as Rs 3,200 crore in October in a mix of equity and debt.
The company's revenue grew nearly seven times in FY23 to Rs 2,630.9 crore, as compared with Rs 373.4 crore in the previous fiscal. That came with a loss of Rs 1,472 crore in FY23, as against a loss of Rs 784.1 crore in FY22.
As per the DRHP, the proceeds will be used for capital expenditure on its cell factory, the Gigafactory project, repayment of debt, investment in research and product development and other growth initiatives.
The company will also consider the pre-IPO placement for an amount aggregating up to Rs 1,100 crore.
Ola Electric is the market leader in the battery-powered scooter segment, with a share of about 35% as of November. According to Vahan data, it posted its highest-ever monthly sales of nearly 30,000 units during the month.
The company was valued at about $3 billion in 2021 and has raised about $450 million so far from investors, including Falcon Edge and SoftBank Group Corp. It is also investing $500 million to set up a facility for making cells and battery packs for electric vehicles in Bengaluru.
