Ola Electric to launch IPO to raise Rs 5,500 cr

Ola Electric, the electric vehicle (EV) company, is gearing up to make its debut on the public markets. It's not your average entry – Ola Electric is the first EV company to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India for its initial public offering (IPO).

So, what's the inside of Ola Electric's IPO? 

They're looking to issue fresh equity shares worth up to Rs 5,500 crore and an offer for sale (OFS) of more than 95 million equity shares at a face value of Rs 10. This makes Ola Electric's IPO larger than any that hit the markets in 2023, surpassing the likes of Mankind Pharma and even the renowned Life Insurance Corporation.

Ola Electric's CEO and founder, Bhavish Aggarwal, is set to sell up to 47.4 million shares in the IPO. Other selling shareholders include some big names like SoftBank Vision Fund, Tiger Global, and Matrix Partners.

Now, what makes this IPO stand out? 

Well, it's a rare event – the first by a two-wheeler manufacturer in decades and the first by an automaker in India in over 20 years! Ola Electric, entering the EV scene in 2017, has already claimed a significant 32% market share, challenging established players in the field.

But here's the twist – the IPO comes at a time when Ola Electric has adjusted its sales goals for 2023-25 and delayed its profit target. According to reports, the funds from the IPO will be directed towards capital expenditure for the Ola Gigafactory project and investments in research and product development.

Bhavish Aggarwal, often compared to Elon Musk, visualizes more than just EV two-wheelers. He has hinted at the possibility of launching four-wheelers in the future.

Ola Electric, valued at $5.5 billion, is not just about electric scooters. They're building cutting-edge technologies and manufacturing capabilities for EVs and core components. Their Ola Futurefactory in Krishnagiri is a powerhouse for electric two-wheeler production, recognized as India's largest automated facility by production capacity.

As for the financials, Ola Electric's revenue skyrocketed more than seven times in the financial year 2022-23, reaching Rs 2,630.93 crore. In the quarter ending June 30, 2023, revenue from operations stood at Rs 1,242.75 crore.

Adding to the excitement, Ola Electric has been approved for India's production-linked schemes related to advanced automotive technology products and advanced cell chemistry batteries.

Keep an eye on this IPO as Ola Electric charges into a new era of sustainable mobility and technological innovation!

and until then...

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