Ola Electric, a Bengaluru-based electric two-wheeler company, has received clearance from the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO), the first by an automaker in over 20 years, sources said. The IPO, filed in December 2023, includes a fresh issue of equity shares up to Rs 55 billion and an offer for sale (OFS) of 95.2 million equity shares by promoters and investors, according to the draft red herring prospectus (DRHP).
The proceeds from the fresh issue will fund capital expenditures for the Ola Gigafactory project, debt repayment by subsidiary OET, investments in research and product development, organic growth initiatives, and general corporate purposes. Ola Electric manufactures EVs and core components like battery packs and motors at its Ola Futurefactory in Krishnagiri and is developing an EV hub in Tamil Nadu.
The company introduced its first EV model, the 'S1 Pro', in August 2021 and now has a portfolio of five scooter models. Within nine months of launching its first scooter, Ola Electric became the best-selling electric two-wheeler (E2W) player in India based on VAHAN Portal registrations. For the fiscal year 2023, the company's revenue surged over sevenfold to Rs 26.30 billion from Rs 3.73 billion the previous year.
Kotak Mahindra Capital Company, Citigroup Global Markets India, BofA Securities India, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, SBI Capital Markets, and BOB Capital Markets are the book-running lead managers for the offer. The equity shares will be listed on the BSE and NSE.
