Bhavish Aggarwal-Led Ola Electric Files DRHP With SEBI To Raise Rs 5,500 Cr Via IPO

Based in Bengaluru, to raise funds for its initial public offering (IPO), pure-play electric vehicle company Ola Electric has submitted its Draft Red Herring Prospectus (DRHP) to capital market regulator SEBI. The issue consists of a new equity share offering of up to Rs 5,500 crore and a 95,191,195 equity share offer for sale (OFS) with a face value of Rs 10.

The issue is being made through the book-building process, with the following conditions in place: at least 75% of the issue must be made available for proportionate allocation to qualified institutional buyers; at most, 15% must be made available to non-institutional bidders; and at most, 10% must be made available to retail individual bidders.

According to the DRHP, the proceeds from the new issue will be utilised for general corporate purposes, investment in research and product development, expenditure to be incurred for organic growth initiatives, repayment or pre-payment, in full or in part, of the indebtedness incurred by the subsidiary, OET, and capital expenditure to be incurred by the subsidiary, OCT, for the Ola Gigafactory project.

The firm led the rankings among Indian incorporated electric 2-wheelers (E2Ws) and original equipment manufacturers (OEMs) in terms of revenue earned from E2W sales in fiscal 2023, according to the Redseer Report cited in the DRHP.

Revenue from operations for the fiscal year 2023 climbed by more than seven times to Rs 2,630.93 crore from Rs 373.42 crore in the previous year. The revenue from operations for the quarter ended on June 30, 2023, was Rs 1,242.75 crore. Additionally, the firm has been granted approval for two PLI schemes in India: the "Automobile PLI Scheme," which deals with the manufacture of sophisticated automotive technology products, and the "Cell PLI Scheme," which is related to advanced cell chemistry batteries.

The registrar of the offer is Link Intime India Private Limited, and the book-running lead managers are Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, BofA Securities India Limited, Goldman Sachs (India) Securities Private Limited, Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited, and BOB Capital Markets Limited. It is proposed that the equity shares be listed on the NSE and BSE.

The market leader in EVs is developing vertically integrated production and technological capacities for EVs and essential EV parts, like as cells. At Ola Futurefactory, its Krishnagiri manufacturing site, it produces EVs and essential EV components including motors and battery packs.

According to the Redseer Report, as of September 30, 2023, the Ola Futurefactory is the largest integrated and automated E2W manufacturing plant in India in terms of production capacity. In Tamil Nadu, India, the company is constructing an electric vehicle hub that will include the Ola Futurefactory, the soon-to-be Ola Gigafactory, and co-located suppliers in the Krishnagiri location.