Ola Electric IPO: SEBI approves Ola Electric IPO, issue of 7250 crores including OFS, check details

Ola Electric gets Sebi approval for Rs 7,250 crore IPO: Market regulator SEBI has approved the issue of Ola Electric, one of the country’s leading electric two-wheeler manufacturing companies. This mega issue of Rs 7250 crore also includes a fresh issue of Rs 5,500 crore and an offer for sale (OFS) of Rs 1,750 crore. The company had submitted the Draft Red Herring Prospectus (DRHP) for its IPO in December last year.

Bhavish Aggarwal will also sell shares in OFS

According to the company’s DRHP, the existing shareholders of the company intend to sell about 9.52 crore shares through OFS. Out of this, Ola Electric founder Bhavish Aggarwal wants to sell 4.73 crore shares. The company’s early investors – Alphawave, Alpine, DIG Investment, Matrix will also sell about 4.79 crore shares through OFS. According to the DRHP, Ola Electric will use the funds raised from the issue for capital expenditure, debt repayment and R&D. Out of this, about Rs 1,226 crore will be spent on capex and Rs 800 crore to repay the debt. Out of this, the largest part of about Rs 1,600 crore is planned to be spent on R&D. The company’s IPO has received SEBI’s approval at a time when the company’s taxi service partner Ola Cabs has also started talks with investment banks for IPO.

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First Indian two-wheeler EV company to bring IPO

Ola Electric is the first Indian two-wheeler EV manufacturer to apply for an IPO. The company filed its Draft Red Herring Prospectus (DRHP) with SEBI on December 22, 2023. Ola Electric’s IPO consists of a fresh issue of Rs 5,500 crore and an Offer for Sale (OFS) of Rs 1,750 crore. The total size of the issue is Rs 7,250 crore.

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Ola Electric currently dominates the country’s EV two-wheeler market with around 52% market share in the Indian market. But in terms of financial performance, In the financial year ended March 2023, the company had shown a loss of Rs 1,472 crore despite consolidated revenue of Rs 2,782 crore. After this, during the first quarter of FY 2023-24, Ola Electric reported a total income of Rs 1,272 crore and a loss of Rs 267 crore.