Ola Electric IPO Secures SEBI Nod, Aiming for $6 Billion Valuation

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Ola Electric secures SEBI approval for IPO to raise ₹5,500 crore, aiming for a $6 billion valuation. The IPO includes an OFS component of 95.2 million shares. Out of the raised funds, ₹1,226 Cr will be allocated to expand capacity from 5 GWh to 6.4 GWh.

Ola Electric IPO News Today

Ola Electric, India's largest electric two-wheeler manufacturer, has received approval from the Securities and Exchange Board of India (SEBI) to list on the public stock exchanges.

The company, which filed its draft red herring prospectus (DRHP) with SEBI on December 22, aims to raise up to ₹5,500 crore through a fresh issue of shares, alongside an offer-for-sale (OFS) component comprising 95.2 million shares.

Additional Read: Ola Electric IPO: Check Issue Date, IPO Price, Analysis & Details

Use of IPO Proceeds

The draft IPO documents specify that ₹1,226 crore of the raised funds will be allocated to expanding the capacity of Ola Electric’s cell manufacturing plant, Ola Gigafactory, from 5 GWh to 6.4 GWh.

DRHP Details

According to the draft IPO papers, Ola Electric’s co-founder and CEO, Bhavish Aggarwal, will sell up to 47.4 million shares, representing approximately 1.3% of the company.

Major investors, including SoftBank Vision Fund, Tiger Global, Alpha Wave Global, Matrix Partners India, and Temasek, will also reduce their holdings.

The total OFS component could potentially generate around $156.7 million (over ₹1,300 crore), with Aggarwal's share sale alone possibly netting him $78 million (about ₹650 crore).

Valuation and Market Position

Ola Electric is targeting a valuation of $6 billion through this IPO. This move comes as the firm seeks to enhance profitability while maintaining its leadership in the electric two-wheeler market.

Amidst these developments, Ola Electric is implementing cost-cutting measures, including the layoff of over 600 employees across various divisions. As of October 2023, the company reported having 3,733 employees.


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