Ola Electric to raise Rs7,250 crore through IPO
17 Jun 2024
Ola Electric has received approval from the Securities and Exchange Board of India (Sebi) for a Rs7,250 crore initial public offer (IPO) – both through fresh issue of Rs5,500 crore and an offer for sale of shares worth Rs1,750 crore.
Ola Electric has filed draft red herring prospectus with the market regulator for issue of 95.2 million fresh shares, to raise around Rs5,500 crore, valuing the company at Rs50,000 crore (46 billion).
The Bangalore-based startup will be the first to come out with an IPO by an EV startup in India.
As per the prospectus, the offer-for-sale portion will include 47.4 million shares (1.3 per cent stake) by Ola Electric’s former chief business officer Ankush Aggarwal, 23.8 million shares by SoftBank Vision Fund, 6.4 million shares by Tiger Global 3.8 million shares by Alpha Wave Global, 3.7 million shares by Matrix Partners India and 1.3 million shares by Temasek.
OIa Electric proposes to utilise the funds so raised to expand its cell manufacturing capacity to 6.4 GWh from 5 GWh as also for repaying some loans. The remaining will be used for research and product development.
The proceeds will fund Ola Electric’s growth, support R&D, expand manufacturing, and strengthen sales and service network. Besides Ola Electric plans to expand market and improve technology for sustained growth.