Sebi Gives Green Flag To Ola Rs 5,500 Cr IPO
DRHP outlines plans to utilise the funds raised for expanding its cell manufacturing plant, research and development, debt repayment and the growth of Ola Electric Technologies
Ola Electric received approval from the Securities and Exchange Board of India (Sebi) for its initial public offering (IPO).
The company plans to raise Rs 5,500 crore through the IPO by issuing new shares and offering existing ones for sale. If successful, Ola Electric will be the first Indian two-wheeler EV company to go public.
In addition, Ola Electric recently secured Rs 100 crore in debt from Alteria Capital. This marks its second round of debt funding in 2024. The move aligns with a trend of Indian startups entering the public markets, following in the footsteps of Go Digit, Awfis and ixigo.
Other companies such as Firstcry, Unicommerce and Mobikwik have also expressed their intentions to list on Indian stock exchanges.
The company's Draft Red Herring Prospectus (DRHP) outlines plans to utilise the funds raised for expanding its cell manufacturing plant, research and development, debt repayment and the growth of Ola Electric Technologies.
Ola Electric is actively engaged in research and development in India, the United Kingdom, and the United States, with a focus on developing new EV products and core components such as battery packs, motors and vehicle frames.
In terms of financial performance, Ola Electric reported a consolidated revenue of Rs 2,782 crore for FY23, marking a significant 510 per cent annual growth, despite facing a loss of Rs 1,472 crore.
For the first quarter of FY24, the company recorded a revenue of Rs 1,272 crore and a loss of Rs 267 crore.
Ola Electric currently holds approximately 52 per cent of the Indian EV market share, positioning itself as a leading EV manufacturer in the country. Additionally, Ather Energy, a Bengaluru-based EV startup, is gearing up to follow suit with its own plans to go public next year.
