Ola Electric IPO: Ola Electric, India’s leading e-scooter manufacturer, has secured regulatory approval for its $660 million Initial Public Offering (IPO), citing two sources familiar with the matter news agency Reuters reported. This milestone paves the way for the country’s first-ever electric vehicle (EV) stock listing.
Supported by major investors such as SoftBank and Temasek, Ola Electric submitted its IPO proposal to the Securities and Exchange Board of India (SEBI) last December. The funding is intended to bolster the company’s operations and growth.
Ola Electric plans to list its shares by mid-July. The company will engage with investors in the coming days to gauge interest and demand for its IPO, according to the sources. Neither Ola nor SEBI responded to requests for comment.
“Ola already engaged with global investors in roadshows earlier this year but will re-discuss terms and explain the business,” the second source stated.
Ola Electric dominates India’s burgeoning e-scooter market, competing with TVS Motor, Bajaj Auto, and Ather Energy. As of September 2023, the company was valued at $5.4 billion.
The company plans to allocate Rs 1,600 crore from the public fundraising to research and product development, while Rs 800 crore will be used to repay debt. Ola Electric Mobility (OEM) announced a lineup of electric motorcycles on August 15, 2023, including models such as Cruiser, Adventure, Roadster, and Diamondhead, with deliveries expected to commence in the first half of fiscal 2026.
In last year December, in its Draft Red Herring Prospectus (DRHP), Ola Electric detailed plans for the first phase of its Ola Gigafactory in Krishnagiri, Tamil Nadu. Phase 1(a), slated for completion by March 2024, will establish a production capacity of 1.4 GWh, funded through internal accruals and long-term borrowings by Ola Cell Technologies Pvt Ltd (OCT). Phase 1(b) will increase capacity to 5 GWh by October 2024.
Phase 2 aims to further expand the Gigafactory’s capacity to 6.4 GWh by April 2025, ultimately reaching 20 GWh by the second quarter of 2026. Part of the IPO proceeds will finance OCT’s capital expenditures to enhance the cell manufacturing plant’s capacity from 5 GWh to 6.4 GWh.
Ola Electric’s IPO represents a significant milestone in India’s EV sector, reflecting the company’s ambitious growth and expansion plans.
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