Ola Electric Raises Rs 410 Crore
Bengaluru-based Ola Electric has reportedly become India’s first two-wheeler electric vehicle maker to receive SEBI’s approval for an IPO launch. According to a Moneycontrol report, the EV giant is looking to raise Rs 7,250 crore. This development comes nearly six months after Ola Electric filed its draft red herring prospectus (DRHP) with SEBI.
Ola Electric’s IPO consists of a fresh issue of Rs 5,500 crore and an offer for sale (OFS) of Rs 1,750 crore, totaling Rs 7,250 crore. As outlined in the firm’s DRHP, existing shareholders are expected to sell 95.19 million shares in the OFS. Ola Electric’s founder, Bhavish Aggarwal, will sell 47.3 million shares. Additionally, the company is considering a pre-IPO placement of shares worth Rs 1,100 crore, which would reduce the size of the fresh issue by that amount.
Shareholder Participation
Ola Electric’s early investors, which include AlphaWave, Alpine, DIG Investment, and Matrix, among others, will sell 47.89 million shares through the OFS. According to the DRHP, the proceeds from the IPO will be used for capital expenditures (capex), debt repayment, and research and development (R&D). Specifically, the company intends to spend about Rs 1,226 crore on capital, Rs 800 crore on debt reduction, Rs 1,600 crore on R&D, and Rs 350 crore on inorganic development.
Financial Performance
In the fiscal year ended March 2023, Ola Electric recorded consolidated revenues of Rs 2,782 crore, a whopping 510% growth. However, the startup’s net loss extended to Rs 1,472 crore due to higher spending.
In the first quarter of the fiscal year 2023-24, Ola Electric recorded a total income of Rs 1,272 crore and losses of Rs 267 crore. As of June 30, 2023, the company’s net value was Rs 2,111 crore.
Read more: Marketing News, Advertising News, PR and Finance News, Digital News
