Ola Electric files draft papers with SEBI to raise ₹5,500 crore via IPO - Hindustan Times
close_game
close_game

Ola Electric files draft papers with SEBI to raise 5,500 crore via IPO

Dec 22, 2023 09:12 PM IST

Ola Electric files DRHP with SEBI to raise ₹5,500 crore via IPO

Ride-hailing giant Ola's electric vehicle arm, Ola Electric, has filed draft papers with India's market regulator for an initial public offering (IPO) with a targeted fundraising of 5,500 crore.

Ola Electric
Ola Electric

The planned IPO will comprise an issue of fresh shares, while CEO Bhavish Aggarwal will sell up to 4.74 crore shares, as outlined in the draft red herring prospectus (DRHP) with Securities and Exchange Board of India.

HT launches Crick-it, a one stop destination to catch Cricket, anytime, anywhere. Explore now!

The funds generated from the fresh issue will be allocated to various purposes, including capital expenditure for the Ola Gigafactory project by the subsidiary, OCT, debt repayment by subsidiary OET, investment in research and product development, expenses related to organic growth initiatives, and general corporate purposes.

Ola Electric commands a significant presence in India's electric two-wheeler sector, boasting a 32 per cent market share and facing competition from industry players like TVS Motor, Bajaj Auto, and Ather Energy, as per data from the Society Of Manufacturers Of Electric Vehicles.

Despite its dominance, the battery scooter manufacturer has adjusted its sales targets for 2023-2025, reducing them by more than half and postponing its profit target by a year.

Ola Electric's IPO coincides with a surge in IPO activity in India, with a record 213 IPOs this year, including those from Tata Technologies and JSW Infrastructure, amid soaring benchmark indexes.

Kotak Mahindra Capital Company, Citigroup Global Markets India, BofA Securities India, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, SBI Capital Markets, and BOB Capital Markets are the book-running lead managers to the offer. The equity shares are proposed to be listed on the BSE and NSE.

(Inputs from wires)

Discover the complete story of India's general elections on our exclusive Elections Product! Access all the content absolutely free on the HT App. Download now!
Stay informed on Business News, TCS Q4 Results Live, Jio Financial Services Q4 Results Live along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Sunday, April 21, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On