Ola Electric has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi). The company is looking to raise up to INR 5,500 crore through fresh issue of shares, with an offer-for-sale (OFS) component of 95.2 million shares.
The company’s founder and CEO Bhavish Aggarwal will sell up to 47.4 million shares in the IPO, with other selling shareholders being Matrix Partners, Tiger Global, SoftBank Vision Fund, Alpha Wave Global and Tekne Private Ventures.
Ola Electric, which dominates the electric two-wheeler market in India, disclosed a doubled net loss of INR 1,472 crore in FY23. Concurrently, consolidated revenue surged over six-fold from the previous year, reaching INR 2,782 crore in FY23.
Last month, Ola sold 30,000 EVs. Despite falling short of the earlier goal of 882,000 reported by Reuters in July, it now anticipates achieving 300,000 e-scooter sales in the ongoing fiscal year, ending in March 2024. Currently, Ola offers three scooter models: Ola S1X, S1 Pro, and the S1 Air.
The last automaker to have listed on Dalal Street was India’s largest car maker Maruti Suzuki’s IPO in 2003. Since then, various auto ancillary companies have raised funds from the Street.
With equity markets being at a record high level, companies are trying to cash in the rally by fund-raising exercises. In December, 11 mainboard companies either raised or announced raising INR 8,400 crore from the route IPOs itself, while five have got INR 11,400 crore through QIPs.
