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

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