Ola Electric IPO: If you are planning to earn through Initial Public Offering i.e. IPO, then there is good news for you. In fact, Ola Electric has received the approval of market regulator SEBI for the first EV startup IPO in the country. However, SEBI has not said anything officially yet. SEBI is expected to formally release the update in the coming days.
According to an ET report, Ola founder Bhavish Aggarwal has internally informed a group of employees about SEBI’s approval. Let us tell you that on December 22 last year, Ola Electric had filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
IPO details
In this IPO, there was a proposal to raise up to Rs 5,500 crore through a fresh issue in addition to Offer-for-Sale (OFS). Rs 1,600 crore raised from the IPO will be spent on research and product development. Apart from this, Rs 800 crore will be invested to repay the loan. The company plans to spend Rs 1,226.43 crore from the IPO on increasing the capacity of its cell manufacturing plant. The company is planning to increase the capacity of the plant from five gigawatts to 6.4 gigawatts.
Who will sell the stake?
According to the IPO documents, CEO Bhavish Aggarwal is going to sell 47.4 million or 4.7 crore shares. At the same time, investors Alpha Web Venture II, DIG Investment IV AB, Matrix Partner India Investments III, LLC will also sell stake. Another investor Tekne Private Ventures XV, Ltd. is also selling stake.
financial position of the company
Ola Electric has reported revenue of Rs 2,782 crore for the financial year ending March 2023, an increase of nearly 510 percent. However, due to increased expenses, its loss has increased to Rs 1,472 crore. The company’s total assets as of June 30, 2023, stood at Rs 2,111 crore.
