Ola Electric gets SEBI approval for ₹5,500 crore IPO

• Bhavish Aggarwal-led Ola Electric has received approval from SEBI for its IPO.
• The EV maker has received approval for an IPO to raise ₹5,500 crore.
• The company filed the DRHP with SEBI in December 2023.

Indian electric two-wheeler maker Ola Electric has received approval from the Securities Exchange Board of India (SEBI) for its initial public offering (IPO). The Bengaluru-based EV maker filed the Draft Red Herring Prospectus (DRHP) in December 2023.

The Bhavish Aggarwal-led company is looking to raise ₹5,500 crore through a fresh issue of shares. Additionally, the IPO also includes an offer for sale (OFS) component of 9.52 crore shares.

The company has also kept an option to raise ₹1,100 crore via pre-IPO placement.

As part of OFS, Aggarwal will offload 4.7 crore equity shares, which is around half of the OFS component. Apart from this, companies such as Indus Trust, Kaha Wave Ventures, MacRitchie Investments, Alpine Opportunity Fund, Matrix Partners India Investments, and others will divest some shares.

According to the draft papers, out of the funds raised, ₹1,226.4 crore will be used for capital expenditure and ₹800 crore will be used to repay debt. The company will spend around ₹1,6000 crore on research and development and ₹350 crore on growth initiatives.

Ola Electric has emerged as the leading electric two-wheeler maker in the country and has been leading the market for a long time now. The company occupies around half of the market share.

The company is in the process of building an EV hub in the Krishnagiri and Dharmapuri districts in Tamil Nadu.

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