In a significant stride towards becoming the first Indian electric vehicle (EV) company to go public, Ola Electric has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The eagerly anticipated initial public offering (IPO) is set to feature a fresh issue of equity shares valued at Rs 5,500 crore and an offer for sale of 95.2 million equity shares at a face value of Rs 10.
According to the DRHP, the IPO’s allocation plan outlines that a minimum of 75% will be reserved for qualified institutional buyers, up to 15% for non-institutional bidders, and a maximum of 10% for retail individual bidders. The company’s prospectus reveals that the largest share of funds, amounting to Rs 1,600 crore from the fresh issue, will be directed towards Ola Electric’s research and product development projects.
Subsidiary Ola Cell Technologies is slated to receive Rs 1,226.4 crore for the construction of the Ola Gigafactory project, while Rs 800 crore is earmarked for the repayment of loans. The remaining funds will be channeled towards organic growth initiatives and general corporate purposes.
Ola Electric, known for its vertically integrated technology and manufacturing capabilities for EVs and core EV components, operates the Ola Futurefactory, the largest integrated and automated electric two-wheeler (E2W) manufacturing plant in India, according to a Redseer report as of September 30, 2023. The company is actively developing an EV hub across Krishnagiri and Dharmapuri districts in Tamil Nadu, featuring the Ola Futurefactory, the upcoming Ola Gigafactory, and associated suppliers.
As of October 31, 2023, Ola Electric boasts a direct-to-customer omnichannel distribution network with 935 experience centers nationwide, including 414 service centers. In the fiscal year 2022-23, the company reported a remarkable seven-fold surge in revenue from operations, reaching Rs 2,630.93 crore compared to Rs 373.42 crore in the preceding year. For the quarter ended June 30, 2023, revenue from operations stood at Rs 1,242.75 crore.
Ola Electric has also secured approval for production-linked incentive (PLI) schemes, including the Automobile PLI Scheme for advanced automotive technology product manufacturing and the Cell PLI Scheme for advancing cell chemistry batteries.
The book-running lead managers for the IPO include Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, BofA Securities India Limited, Goldman Sachs (India) Securities Private Limited, Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited, and BOB Capital Markets Limited. Link Intime India Private Limited has been appointed as the registrar of the offer, and the equity shares are intended to be listed on both the BSE and NSE.