SEBI approves Ola Electric's Rs 5,500 crore IPO

Ola Electric, the prominent electric two-wheeler manufacturer, has secured approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO). The company filed its preliminary IPO papers with SEBI in December 2023 and received the green light on June 10, according to an update from the markets regulator.

Ola IPO

The proposed IPO will feature a combination of a fresh issue of equity shares worth up to Rs 5,500 crore and an offer for sale (OFS) of 9.52 crore equity shares by the company’s promoters and investors, as detailed in the draft red herring prospectus (DRHP). The proceeds from the fresh issue are earmarked for several strategic initiatives, including capital expenditure for the Ola Gigafactory project, debt repayment by subsidiary OET, investment in research and product development, organic growth efforts, and general corporate purposes.

Ola Electric, headquartered in Bengaluru, manufactures electric vehicles (EVs) and essential EV components, such as battery packs and motors, at its Ola Futurefactory in Krishnagiri. The company is also developing an extensive EV hub in Tamil Nadu, spanning Krishnagiri and Dharmapuri districts. This hub includes the Ola Futurefactory, the forthcoming Ola Gigafactory, and co-located suppliers.

The company launched its first EV model, the 'S1 Pro', in August 2021 and now boasts a portfolio of five scooter models. Ola Electric quickly emerged as the leading electric two-wheeler manufacturer in India, achieving the highest sales based on E2W registrations on the VAHAN Portal of the Ministry of Road Transport and Highways within nine months of delivering its first EV scooter.

As of June 2023, Ola Electric held a 31% market share in the E2W segment and is exploring opportunities to export EVs to select international markets. The company operates a direct-to-customer (D2C) omni-channel distribution network, which includes 935 experience centres across India, featuring 414 service centres as of October 31, 2023.

For the fiscal year 2023, Ola Electric reported a significant increase in revenue, jumping more than seven times to Rs 2,630.93 crore from Rs 373.42 crore the previous year.

Also watch: Ahead of IPO, Ola electric slashes sales target: Report