12-Jun-2024
2 mins read
Ola Electric Company has finally received SEBI approval for raising Rs 7,250 crore via an IPO. Following the approval, Ola Electric is set to become the first Indian electric vehicle (EV) company to go public. The company might launch its IPO within a month. However, the bid-offer opening dates and price bands have not yet been announced.
Ola Electric's IPO will comprise a fresh issue of equity shares amounting to Rs 5,500 crore and an offer-for-sale of 95 million equity shares estimated worth Rs 1,750 crores. The firm is targeting a valuation of $7 to $8 Billion.
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Ola Electric Stake Selling Shareholders
Bhavesh Agarwal, Ola Electric’s Founder and CEO plans to sell 47.4 million shares equivalent to 3.48% stake in the IPO. Other selling shareholders include India Trust, Alpine opportunity Fund, DIG Investment, Internet Fund III, Matrix Partners, SoftBank Vision Fund, Alpha Wave Ventures and Tekne Private Ventures.
Ola Electric entered the EV automobile market in 2017, Since then it emerged as a leading player, commanding 35% market share in the EV market. Data from the VAHAN portal indicates that Ola Electric market share rose from 21% to 24% in the last one year period.
According to DRHP, the net funds received from this initial public offer will be allocated toward capital expenditure, debt repayment, research and development. Additionally, the company is likely to spend Rs 1,600 crore in R&D and Rs 350 on organic growth initiatives.
Ola Electric’s Financial Update in Brief
Ola Electric revenue increased 510%, rising from Rs 456 crore in FY22 to Rs 2,782 in FY23. This includes revenue from operations and other income. Media reports suggest the company’s net loss for FY23 is at Rs 1,472 crore compared to Rs 784.1 crore in FY22, as expenses surged exponentially.
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