EV maker Ola Electric secures market regulator Sebi approval for IPO | IPO News
The company’s total revenue witnessed an increase of 510 per cent, rising to Rs 2,782 crore in FY23, from Rs 456 crore in FY22
Electric vehicle maker Ola Electric has received official approval from market regulator Securities Exchange Board of India (Sebi) on June 20 for its initial public offering (IPO), wherein the firm is looking to raise Rs 7,250 crore. Following the market regulator’s nod, Ola Electric is set to become the first Indian EV company to go public.
The IPO will comprise a fresh issue of equity shares amounting to Rs 5,500 crore, along with an offer for sale (OFS) of over 95 million equity shares, estimated to be worth around Rs 1,750 crore.
Bhavish Aggarwal, Ola Electric’s founder and chief executive officer, plans to sell up to 47.4 million shares, equivalent to a 3.48 per cent stake in the IPO. Other selling shareholders include Indus Trust, Alpine Opportunity Fund, DIG Investment, Internet Fund III (Tiger Global), MacRitchie Investments, Matrix Partners, SoftBank Vision Fund, Alpha Wave Ventures, and Tekne Private Ventures.
According to the draft red herring prospectus (DRHP), the proceeds from the fresh issue will be allocated towards capital expenditure (capex), debt repayment, and research and development (R&D). Of the total capital raised, the firm plans to invest Rs 1,226 crore in capex and allocate Rs 800 crore for debt repayment. Additionally, it intends to spend Rs 1,600 crore on R&D and Rs 350 crore on organic growth initiatives.
The company’s total revenue witnessed an increase of 510 per cent, rising to Rs 2,782 crore in FY23, from Rs 456 crore in FY22. The Ebitda (earnings before interest, taxes, depreciation, and amortisation) profit/(loss) for FY23 improved from -157 per cent in FY22 to -43 per cent in FY23.
First Published: Jun 20 2024 | 8:47 PM IST
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