Bhavish Aggarwal-led Ola Electric Technologies on Friday filed draft papers for an initial public offering (IPO) to raise ₹5,500 crore by issuing new shares, apart from a share sale by existing investors. The IPO by Bengaluru-based Ola Electric, India’s largest electric two-wheeler maker in terms of sales, is the first attempt by an Indian pure-play electric vehicle maker to go public.
The share sale papers said promoter and chief executive Aggarwal will sell up to 47.4 million shares out of the 95.2 million shares on offer. That makes Aggarwal, who also founded Ola Cabs, the single-largest seller in the offer for sale (OFS). The issue also comprises a sale of new shares.
Other major stakeholders selling their shares include promoter group entity Indus Trusts, and investors Softbank Vision Fund, Matrix Partners India Investments, Alpha Wave Ventures, Alpine Opportunity Fund and Tekne Private Ventures.
Proceeds from the fresh issue of shares will be used towards capital expenditure for its cell manufacturing subsidiary for capacity expansion at the Ola Gigafactory from 5 GWh to 6.4 GWh; repayment or prepayment of debt incurred by Ola Electric; investment in research and product development; and organic growth initiatives, the company said in the draft prospectus. It estimates this capacity expansion to cost ₹1226 crore.
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