Ola Electric Receives SEBI Nod For IPO, Looks To Raise Rs 5,500 Crore

Ola Electric's proposed IPO includes a fresh issue of equity shares up to Rs 5,500 crore and an OFS of 9.52 crore equity shares by its promoters and investors, as stated in the DRHP

Ola Electric is known for manufacturing EVs and core EV components such as battery packs and motors at its Ola Futurefactory in Krishnagiri.

Source : OLA

Ola Electric, a leading electric two-wheeler company, has received approval from the Securities and Exchange Board of India (SEBI) to raise funds through initial public offerings (IPOs). According to an update from the markets regulator on Thursday, both companies, which filed their preliminary IPO papers in December 2023, obtained the regulatory green light on June 10.

In SEBI's terminology, obtaining "observations" signifies the approval to proceed with the public issue.

Ola Electric's proposed IPO includes a fresh issue of equity shares up to Rs 5,500 crore and an offer for sale (OFS) of 9.52 crore equity shares by its promoters and investors, as stated in the draft red herring prospectus (DRHP).

The Bengaluru-based company plans to use the proceeds from the fresh issue for several key purposes: capital expenditure for its subsidiary OCT's Ola Gigafactory project, debt repayment for subsidiary OET, investment in research and product development, funding organic growth initiatives, and general corporate purposes.

Ola Electric is known for manufacturing electric vehicles (EVs) and core EV components such as battery packs and motors at its Ola Futurefactory in Krishnagiri. The company is developing an EV hub in Tamil Nadu's Krishnagiri and Dharmapuri districts, which includes the Ola Futurefactory, the upcoming Ola Gigafactory, and co-located suppliers in the Krishnagiri district.

Ola Electric launched its first EV model, the 'S1 Pro,' in August 2021 and currently offers a portfolio of five scooter models. Within nine months of delivering its first EV scooter, Ola Electric became the top-selling electric two-wheeler manufacturer in India, based on E2W registrations on the Ministry of Road Transport and Highways' VAHAN Portal.

As of the quarter ending June 2023, Ola Electric held a 31 per cent market share in the E2W sector and is considering exporting EVs to select international markets in the future.

The company's direct-to-customer (D2C) omni-channel distribution network includes 935 experience centers across India, with 414 serving as service centers, as of October 31, 2023.

For the fiscal year 2023, Ola Electric's revenue from operations soared more than sevenfold to Rs 2,630.93 crore, compared to Rs 373.42 crore the previous year.