Wednesday, June 19, 2024
HomeBusinessOla electric to raise Rs.7,250 crore IPO, receives SEBI approval

Ola electric to raise Rs.7,250 crore IPO, receives SEBI approval

Electric vehicle maker, Ola Electric has received approval from SEBI for a Rs.7,250 crore IPO (Initial public offering), according to sources who did not wish to be named, Moneycontrol reported.

Ola Electric’s S1 Air e-scooters are pictured inside its manufacturing facility in Pochampalli in the southern state of Tamil Nadu(Reuters)

Ola Electric was the first-ever Indian EV two-wheeler maker to file for an IPO. The firm had filed its draft red herring prospectus (DRHP) with the markets regulator on December 22, 2023, according to the article.

Date mein Crickit, late mein Crickit! Catch the game anytime, anywhere on Crickit. Find out how

Also Read | Ola Electric layoffs: Company to cut 500 jobs, Bhavish Aggarwal ‘reducing costs’

Ola Electric has roped in Kotak Mahindra Capital and Goldman Sachs for an IPO in early 2024, Moneycontrol reported.

The IPO consisted a fresh issue of Rs.5,500 crore and an offer for sale (OFS) of 1,750 crore totalling to Rs.7,250 crore. Existing shareholders were said to sell 95.19 million shares in the OFS, as per the firm’s DRHP, the article read.

Ola Electric’s founder Bhavish Aggarwal will be selling 47.3 million shares. The firm’s initial investors including AlphaWave, Alpine, DIG Investment, Matrix, and others will also be selling 47.89 million shares via the OFS, according to Moneycontrol.

Also Read | Coconut shell assault: Terrifying moment Bengaluru motorist smashes car windows, captured on camera

As per the DRHP, Ola Electric will utilise the funds for capex, repaying debt, and research and development (R&D). The firm will use around Rs.1,226 crore for capex, and Rs.800 crore to repay debt. It will spend the most, about Rs.1,600 crore, on R&D, and 350 crore on inorganic growth, according to the article.

Ola Electric presently dominates the EV two-wheeler market with around 52% market share. According to data from the Government’s VAHAN website, the company registered 34,000 units during the month, marking a growth of 54% year-on-year growth.

Ola Electric has reported consolidated revenues of Rs.2,782 crore, up nearly 510% in the financial year 2022-23, even as its net loss increased to Rs.1,472 crore due to increased expenses.

Also Read | Police nab Ola driver in shootout after he steals woman’s bag in Noida

Source link



Please enter your comment!
Please enter your name here

- Advertisment -
Google search engine

Most Popular

Recent Comments