Ola Electric IPO worth $6 Billion Receives SEBI Approval

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Synopsis:

Ola Electric's IPO plans to raise up to ₹5,500 crore via fresh issue along with an offer for sale of 9.52 crore shares. The IPO valuation goes up to $6 billion. The company targets expansion, debt reduction, and R&D initiatives.

Ola Electric IPO News Today

Ola Electric, India’s one of the largest electric two-wheeler manufacturers, has obtained approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). The company aims for a $6 billion valuation through the IPO.

This marks a significant milestone as it would be the first IPO by an EV startup in the country and one of the largest new-age IPOs of the year.

Financial Details

Ola Electric filed its draft red herring prospectus (DRHP) proposing to raise up to ₹5,500 crore through a fresh issue, in addition to an offer-for-sale (OFS) component of 95.2 million shares.

Bhavish Aggarwal, the promoter, plans to sell up to 47.4 million shares, with SoftBank Vision Fund, Tiger Global, and others also divesting stakes. Aggarwal could potentially make around $78 million from the share sale.

Utilisation of Proceeds

  • Out of the total proceeds, ₹1,226 crore will be used for expanding capacity at Ola Gigafactory.
  • ₹800 crore will be allocated for debt repayment, while ₹350 crore will fuel organic growth initiatives.
  • The company plans to invest ₹1,600 crore in R&D over the next three years.

Other Key Information

  • Ola Electric is amid cost-cutting measures, intending to slash over 600 jobs across various verticals.
  • The IPO comes at a time when other startups like Swiggy and FirstCry have also filed their draft IPO papers.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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