Ola Electric is gearing up to launch its initial public offering (IPO) on 2nd August, with the listing anticipated on 9th August. The subscription for anchor investors will open on 1st August.
This IPO is set to be a historic event, marking the first public issue by an EV startup in India and becoming one of the largest new-age public offerings in 2024.
The company submitted its draft red herring prospectus to the Securities and Exchange Board of India (SEBI) in December 2023. According to the draft, Ola Electric aims to raise up to Rs 5,500 crore through a fresh share issue. Additionally, existing shareholders plan to sell 95.2 million shares via an offer-for-sale (OFS) route.
Promoter Bhavish Aggarwal will sell 47.4 million shares, while the promoter group Indus Trust will sell 4.18 million shares through the OFS. The company’s investors, including AlphaWave, Alpine, DIG Investment, and Matrix Partners, are set to sell 41.53 million shares via the OFS as outlined in the draft filing.
The company also has the option to raise ₹1,100 crore through a pre-IPO placement, which would adjust the size of the fresh issue accordingly.
The funds raised will be allocated as follows: over Rs 1,200 crore for expanding its gigafactory capacity, Rs 800 crore for debt repayment, Rs 1,600 crore for research and development, and Rs 350 crore for organic growth initiatives.