The Bengaluru-based Ola Electric Mobility is set to the become the India’s first fully Electric-vehicle maker company to hit the stock markets as it filed a draft red-herring prospectus with the Securities and Exchanges Board of India (SEBI) on December 22, 2023. The dates are yet to be finalised but the company is expected to launch its IPO in early 2024. The company is the largest electric two-wheeler maker in the country by sales volume and is also the first automobile company in nearly two decades to launch IPO.
According to the DRHP filed with SEBI, the Company plans to raise around Rs 5,500 crore through a combination of a fresh issue of 9.51 crore shares and an offer-for-sale. The company plans to put the raised capital towards debt repayment and business expansion. Of the total net proceeds, Rs 1,226.43 crore will go towards capacity expansion of its cell manufacturing plan, Rs 1,600 crore toward research and development. Another 800 crore is marked for debt repayment.
The founder and current promoter of the company Bhavish Agarwal who holds 36.94% stake in the company, will offload around 4.73 crore shares. Other promoters and investors such as Indus Trust, Softbank group, Matrix partners and Tiger global will also offload shares through the public issue.
Softbank group which owns 21.98% stake in the company, will offload 2.38 crore shares. The venture capital firms Matrix partners and Tiger Global, which own 63.51% and 6.03% respectively, will offload 37 lakh and 63 lakh shares respectively. Indus Trust from the promoter group will offload around 41 lakh shares. Other investors such as Alpha Wave Ventures II and Alpine investors will also offload their shares.
The company had posted a revenue of Rs 2,631 crore in FY23, up nearly 605% from Rs 373 crore in FY22. While the revenue surged, the losses surged too. The company reported a loss of Rs 1,472 crore in FY23 against Rs 784 crore in FY22.
Kotak Mahindra Capital Company, BofA Securities, Axis Capital, SBI Caps, CitiGroup Global Market India, Goldman Sachs (India) Securities and BOB Capital Markets are the book-running lead managers for the Ola Electric Mobility IPO whereas Link Intime India is the registrar.
With 2023 having had a tremendous run for the IPO market, Ola Electric Mobility is among the major IPOs expected in 2024 along with FirstCry, Swiggy and Oyo.
