Ola Electric, an automobile renting company which is led by Bhavish Aggarwal, has recently secured approval from the Securities and Exchange Board of India (SEBI) for its landmark for the initial public offering (IPO), making it the first electric vehicle (EV) startup in India to do so. The IPO further includes a fresh issuance of shares valued at Rs 5,500 crore and an offer-for-sale (OFS) of 9.51 crore equity shares, as detailed in the draft red herring prospectus.
Under the OFS, Bhavish Aggarwal will be selling 4.7 crore equity shares, while the promoter group, Indus Trust, will divest around 41.78 lakh shares. Ola Electric filed the draft IPO papers with SEBI in December 2023, aiming to raise Rs 5,500 crore, which also includes a pre-IPO placement of Rs 1,100 crore.
According to the draft papers, proceeds amounting to Rs 1,226.4 crore will be used for the capital expenditure of its subsidiary, and Rs 800 crore will be used for debt repayment.
Proceeds worth Rs 1,600 crore will be invested in research and product development, while another Rs 350 crore will be utilised for organic growth initiatives, the DRHP mentioned.
Meanwhile, Ola Electric captured 49 per cent market share in the electric two-wheeler (2W) segment in May, with 37,191 registrations (as per the government’s Vahan portal) riding on its S1 scooter portfolio.
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Inputs from IANS
