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SEBI Approves Ola Electric’s ₹5,500 Crore IPO Launch: Report

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Ola Electric gets SEBI nod to launch ₹5,500 crore IPO: Report

Ola Electric, the electric vehicle maker, has received approval from the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The approval comes as the company’s stock has surged by nearly 30% in 2024 and more than 100% over the past year.

The IPO will consist of a fresh issue of ₹5,500 crore and an offer for sale (OFS) worth ₹1,750 crore, totaling ₹7,250 crore. Existing shareholders, including Ola Electric’s founder Bhavish Aggarwal and initial investors like AlphaWave and Matrix, are expected to sell a combined 95.19 million shares.

Ola Electric submitted its draft red herring prospectus (DRHP) to SEBI on December 22, proposing to raise up to ₹5,500 crore through a fresh issue and an offer-for-sale component of 95.2 million shares. The company is also considering a re-IPO placement of shares worth ₹1,100 crore.

The funds raised from the IPO will be used for capital expenditures, debt repayment, and research and development (R&D). Ola Electric currently leads the EV two-wheeler market with a market share of around 52% and registered 34,000 units in the past month, reflecting a 54% year-on-year growth.

In the financial year ending March 2023, Ola Electric reported consolidated revenues of ₹2,782 crore, reflecting a nearly 510% increase. However, the company also reported a net loss of ₹1,472 crore due to increased expenses. In Q1 2023-24, the company reported a total income of ₹1,272 crore and losses of ₹267 crore. As of June 30, 2023, Ola Electric had a net worth of ₹2,111 crore.

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