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SEBI approves Ola Electric’s ₹7,500 crore IPO

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In Short:

Ola Electric Technologies, led by Bhavish Aggarwal, has received approval from SEBI for an IPO to raise ₹7,500 crore. This makes them the first Indian EV two-wheeler maker to file for an IPO. The company plans to raise up to ₹5,500 crore through a fresh issue and is aiming for a $6 billion valuation. Aggarwal is also planning to take Ola Cabs public and has ventured into generative Artificial Intelligence with Krutrum AI.

Bhavish Aggarwal’s Ola Electric Gets SEBI Approval for ₹7,500 Crore IPO

Exciting news alert! Bhavish Aggarwal’s Ola Electric Technologies has just received the green light from SEBI for its IPO, aiming to raise a whopping ₹7,500 crore. This makes Ola Electric the first Indian EV two-wheeler maker to step into the IPO arena. The journey began when the firm filed its draft red herring prospectus (DRHP) with SEBI on December 22, 2023.

Key Details of the IPO

Ola Electric plans to raise up to ₹5,500 crore through a fresh issue and has an offer-for-sale (OFS) component of 95.2 million shares. Additionally, there is a possibility of a pre-IPO placement of shares worth ₹1,100 crore, which could impact the size of the fresh issue.

Valuation Target

The Bengaluru-based company is eyeing a valuation of $6 billion through this public offering, aiming high and strong.

Stakeholders and Usage of Funds

The issue includes shares for sale by key stakeholders including Aggarwal himself and major investors like Softbank Vision Fund. The funds generated will be directed towards capital expenditure, debt repayment, research, and growth initiatives, among other areas as per the company’s draft prospectus.

Exciting Financial Updates

Ola Electric has seen impressive revenue growth of nearly 510% to ₹2,782 crore in the FY ending March 2023, despite an increase in net losses. For Q1 of 2023-24, the total income stood at ₹1,272 crore with losses of ₹267 crore, showcasing the company’s strong financial position and growth trajectory.

Aggarwal is not stopping here. Besides Ola Electric, plans are in motion to take Ola Cabs public and venture into the AI sector with Krutrum AI. The entrepreneurial journey continues!

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