Ola Electric gets Sebi approval for Rs 7,250-crore IPO
Electric vehicle maker Ola Electric has received market regulator Sebi’s nod for its initial public offering wherein the firm is looking to raise Rs 7,250 crore.
Ola Electric was the firs-ever Indian EV two-wheeler maker to file for an IPO. The firm filed its draft red herring prospectus (DRHP) with the markets regulator on December 22, 2023.
Ola Electric’s IPO comprisesd a fresh issue of Rs 5,500 crore and an offer for sale (OFS) of Rs 1,750 crore totalling Rs 7,250 crore. Existing shareholders were said to sell 95.19 million shares in the OFS, as per the firm’s DRHP.
As per the DRHP, Ola Electric will utilise the funds for capex, repaying debt, and research and development (R&D). The firm will use around Rs 1,226 crore for capex, and Rs 800 crore to repay debt. It will spend the most, about Rs 1,600 crore, on R&D, and Rs 350 crore on inorganic growth.
