Business

Ola Electric Gets SEBI Nod For IPO, Set To Make EV Startup History

Ola Electric, led by Bhavish Aggarwal, has secured approval from the Securities and Exchange Board of India (SEBI) for its much-anticipated initial public offering (IPO), marking a watershed moment as the first IPO of by an electric vehicle (EV) startup in India.

According to the draft red herring prospectus, Ola Electric’s public issue comprises a fresh issue of Rs 5,500 crore along with an offer-for-sale (OFS) of 9.51 crore equity shares.

The OFS will see Bhavish Aggarwal divesting 4.7 crore equity shares, while the promoter group Indus Trust plans to sell 41.78 lakh shares.

The EV firm had originally filed its draft IPO papers with SEBI in December 2023, aiming to raise up to Rs 5,500 crore, which included a pre-IPO placement of Rs 1,100 crore.

As outlined in the draft prospectus, the funds raised will be allocated towards strategic objectives:

  • Rs 1,226.4 crore for subsidiary capital expenditure
  • Rs 800 crore for debt repayment
  • Rs 1,600 crore for research and product development, and
  • Rs 350 crore for organic growth initiatives

Ola Electric has rapidly gained traction in the electric two-wheeler (2W) segment, securing a dominant 49 percent market share in May.

Meanwhile, the company’s S1 scooter portfolio alone accounted for 37,191 registrations during the period, as per data sourced from the government’s Vahan portal.

The IPO approval however underscores growing investor interest in the EV sector amidst a push towards sustainable mobility solutions in India.

Also Read: Indian Bonds Set For Historic Foreign Investment Surge Post JPMorgan Index Inclusion

Mankrit Kaur

Recent Posts

Gautam Adani Hails Puri Lifeguards As Unsung Heroes During Rath Yatra Visit

Gautam Adani, Chairman of the Adani Group, visited Puri in Odisha during the annual Rath…

7 hours ago

Acharya Pramod Krishnam Slams Congress Over ‘Internal Emergency’ Allegation

Acharya Pramod Krishnam, stirred political debate by claiming an 'internal emergency' still exists within the…

8 hours ago

MRM Meeting: Pledge for Global Peace, Green India, De-addiction & Democratic Integrity

Taking a crucial step toward positive transformation, social reform, and global peace, the Muslim Rashtriya…

8 hours ago

India To Host 2029 World Police & Fire Games; Amit Shah Hails Global Recognition

India has been chosen to host the prestigious 2029 World Police and Fire Games in…

8 hours ago

Seeing The Lord Among Devotees Is The Pinnacle Of Humility: Gautam Adani At Rath Yatra

Gautam Adani, along with his wife and Karan, participated in the Rath Yatra in Puri,…

11 hours ago

PM Modi Interacts With Group Captain Shubhanshu Shukla Aboard The ISS

PM Narendra Modi interacted with Group Captain Shubhanshu Shukla, the first Indian to reach the…

12 hours ago