According to a report on Tuesday, the IPO is anticipated to consist of an offer for sale (OFS) of Rs 1,750 crore and a fresh issuance of Rs 5,500 crore, for a total estimated value of Rs 7,250 crore.
The Securities and Exchange Board of India has given Ola Electric permission to begin its Rs 7,250-crore initial public offering (IPO). On December 22, 2023, Sebi received the draft red herring prospectus (DRHP) for this initial public offering. As reported by Moneycontrol on Tuesday, the IPO is anticipated to consist of an offer for sale (OFS) of Rs 1,750 crore and a fresh issue of Rs 5,500 crore, for a total estimated value of Rs 7,250 crore.
According to the DRHP, 95.19 million shares in the OFS were allegedly sold by current shareholders. AlphaWave, Alpine, DIG Investment, Matrix, and other original investors would jointly sell 47.89 million shares, with founder Bhavish Aggarwal planning to sell 47.3 million of those shares. With its IPO, the Bengaluru-based business hopes to raise $6 billion in value.
Ola Electric plans to use the money it earned from the initial public offering (IPO) to launch the Ola Gigafactory initiative, which would produce batteries on a massive scale (100 GWh) for the production of electric cars, batteries, and other parts.
A portion of the proceeds will also be used for general business needs, such as debt repayment, organic expansion, product development, and research. The company plans to pay down its debt with Rs 800 crore and invest around Rs 1,226 crore. According to the article, it would spend the most, almost Rs 1,600 crore, on R&D and Rs 350 crore on inorganic expansion.
Aggarwal tweeted 'Exciting month ahead' on X without acknowledging the IPO.
With almost a 52% market share, Ola Electric presently has a commanding position in the electric vehicle (EV) two-wheeler industry. Ola Electric recorded 34,000 units in the most recent month, according to statistics from the Government's VAHAN site. This represents a noteworthy 54% year-over-year rise.
Financially speaking, Ola Electric had consolidated revenues for the fiscal year 2022–2023 of Rs. 2,782 crore, which represents a remarkable rise of over 510%. It is noteworthy to acknowledge that increased expenses have resulted in a surge in net losses to Rs. 1,472 crore.
