Ola Electric, an electric two-wheeler manufacturer, has received approval from the capital markets regulator Sebi to raise funds through an initial public offering (IPO), marking the first such issuance by an automaker in India in over 20 years, according to sources on Tuesday.
The IPO will include a new issuance of equity shares valued up to Rs 5,500 crore and an offer for sale (OFS) of 9.52 crore equity shares by promoters and investors, as per the draft red herring prospectus (DRHP).
The Bengaluru-based company, which submitted its preliminary IPO documents to Sebi in December 2023, has now received the green light to proceed with the public offering.
According to the draft papers, the funds from the fresh issue will be allocated for capital expenditures for the subsidiary OCT’s Ola Gigafactory project, debt repayment by subsidiary OET, investments in research and product development, organic growth initiatives, and general corporate purposes.
Ola Electric produces electric vehicles and key EV components, such as battery packs and motors, at its manufacturing facility, Ola Futurefactory, located in Krishnagiri.
The company is developing an EV hub in the Krishnagiri and Dharmapuri districts of Tamil Nadu, which will include the Ola Futurefactory, the upcoming Ola Gigafactory, and co-located suppliers in Krishnagiri district.
Ola Electric introduced its first EV model, the ‘S1 Pro’, in August 2021 and now offers a range of five scooter models.
Within nine months of delivering its first EV scooter, Ola Electric became the top-selling electric two-wheeler (E2W) company in India, based on E2W registrations listed on the VAHAN Portal of the Ministry of Road Transport and Highways.
For the fiscal year 2023, the company’s revenue from operations surged over sevenfold to Rs 2,630.93 crore from Rs 373.42 crore the previous year.
