Ola Electric, one of the countries leading electric two-wheeler makers, has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). This is the first IPO by an electric vehicle startup in India and is expected to be one of the largest in 2024.
The Bengaluru-based company aims to raise up to Rs 5,500 crore through a fresh issue of shares and an offer-for-sale (OFS) of 95.2 million shares. Promoter Bhavish Aggarwal will sell 47 million shares, half of the OFS. Other stakeholders like Indus Trust and Matrix Partners will also divest their stakes.
Ola Electric might raise an additional Rs 1,000 crore via pre-IPO placement, which would reduce the fresh issue size. The IPO proceeds will be used to repay loans from Axis Bank and Bank of Baroda, expand the EV portfolio, and increase the capacity of its gigafactory.
Specifically, Rs 1,264 crore will go towards the gigafactory, Rs 800 crore for debt repayment, Rs 350 crore for organic growth, and Rs 1,600 crore for research and development over the next three years.