After months of hiatus, Ola Electric Mobility Ltd – India’s top electric two-wheeler maker – has finally filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).
Ola Electric’s IPO is a combination of a fresh issue and an offer for sale. The company plans to issue shares worth Rs 5,500 crore, while its existing investors, including founder Bhavish Aggarwal, will sell 95,191,195 shares.
The company will use the proceeds for capital expenditure to be incurred by its subsidiary OCT for the expansion of the capacity of the cell manufacturing plant from 5 GWh to 6.4 GWh, as well as for repayment of debt, investment in product and research, and for general corporate purposes.
Ola Electric’s issue marks the first public offering by an electric vehicle maker and the first by an automaker in the last 20 years.
Bengaluru-based Ola Electric remains the dominant player in the country’s electric two-wheeler market a market share of over 30%. In 2023, the company sales have crossed 253,000 units.
In October, the Bengaluru-based company raised Rs 3,200 crore through a mix of equity and debt from Temasek-led investors and the State Bank of India. The funds would be used for expanding its business and setting up a lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu.
Ola Electric was selected in the government’s ambitious Rs 18,100-crore production-linked incentive scheme for Advanced Chemistry Cell manufacturing. Ola was awarded a capacity of 20 GWh under the scheme.