Ola Electric Files for IPO: 5 Key Things To Know The proposed issue is a combination of fresh equity share release of up to INR 5,500 crore and an offer for sale (OFS) of 95,191,195 equity shares at a face value of INR 10.
By Priya Kapoor
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EV maker Ola Electric has filed a draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) for an IPO of its shares. The proposed issue is a combination of fresh equity share release of up to INR 5,500 crore and an offer for sale (OFS) of 95,191,195 equity shares at a face value of INR 10.
The Bengaluru-based company is in the process of building an EV hub in the Krishnagiri and Dharmapuri districts in Tamil Nadu, India, which includes the Ola Futurefactory, the upcoming Ola Gigafactory, and co-located suppliers in Krishnagiri district.
The company, which has become the best-selling E2W player in India based on E2W registrations listed on the VAHAN Portal of the Ministry of Road Transport and Highways, introduced its first EV model 'S1 Pro in August 2021 and currently boasts of a portfolio of 5 scooter models.
For the fiscal year 2023, revenue from operations jumped more than seven times to Rs 2,630.93 crore against Rs 373.42 crore a year ago. For the quarter ended June 30, 2023, revenue from operations reached Rs 1,242.75 crore. The company has also been approved for production-linked incentive (PLI) schemes, including the Automobile PLI Scheme for the manufacturing of advanced automotive technology products and the Cell PLI Scheme for advancing cell chemistry batteries.
Here are five key things to know about the issue
First by auto company in 20 years: Ola Electric IPO is going to be the first IPO by any auto company in India in two decades. The last IPO by any automaker was by Maruti Suzuki which hit the markets in 2003. It is also the first pure play EV company to list on Indian bourses.
Allocation: 75 percent of the issue is allocated for qualified institutional buyers (QIBs); up to 15 percent for non-institutional investors (NIIs); and not more than 10 percent for retail individual bidders.
Stake disinvestment: Bhavish Aggarwal, the founder of Ola Electric, is set to sell around 47.4 million shares in the SoftBank Group-backed e-scooter maker. The company is targeting a valuation in the range of $7-8 billion by early 2024. In addition to Bhavish Aggarwal, various entities like Indus Trust, Kaha Wave Ventures, Alpine Opportunity Fund, DIG Investment Internet Fund, MacRitchie Investments, Matrix Partners India Investments, SVF II Ostrich, and Tekne Private Ventures XV are also selling stakes in the IPO.
Funds deployment: As per the DRHP, the proceeds from the fresh issue will be allocated for various purposes, including Ola Cell Technologies' Gigafactory project, research and development (R&D) investments; organic growth initiatives and general corporate purposes, to repay/pre-pay debts of Ola Electric Technologies (OET).
Book managers: The book-running lead managers are Kotak Mahindra Capital, Citigroup Global Markets India, BofA Securities India, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, SBI Capital Markets, and BOB Capital Markets. Link Intime India is the appointed registrar of the offer.
