With the filing of its preliminary offering papers, Ola Electric aims to raise Rs 5,500 crore through a new share sale.
With an OFS of 95.2 million shares, the business wants to raise Rs 5,500 crore through a new share offering.
Ola Electric, the first EV firm to seek an IPO, filed its draft red herring prospectus (DRHP) with Sebi. A new issuance and 95.2 million shares are being offered for sale (OFS) by the electric scooter producer to raise to Rs 5,500 crore. ET reported earlier that financiers expect the IPO to value the company at $7-8 billion.
In the IPO, founder and CEO Bhavish Aggarwal would sell up to 47.4 million shares, or 1.3% interest, followed by SoftBank Vision Fund (23.8 million), Tiger Global (6.4 million), Alpha Wave Global (3.8 million), Matrix Partners India (3.7 million), and Temasek (1.3 million). Promoter Indus Trust will sell 4.2 million shares. At $7-8 billion, Aggarwal might make $90-100 million from the transaction.
The DRHP stated that the company may issue up to Rs 1,100 crore in shares before submitting the red herring prospectus (RHP).
Last Worth $5 Billion
Tracxn reports that the company has raised approximately $1 billion in investment, including debt, and was valued at $5 billion during a private fundraiser.
The first Indian pure-play electric car firm to go public is Bengaluru-based Ola Electric, India’s largest electric two-wheeler maker by sales. Promoter and CEO Aggarwal will sell up to 47.4 million of the 95.2 million shares offered, according to the share sale papers. The offer for sale’s greatest seller is Aggarwal, who established Ola Cabs. The issue includes new share sales.
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Indus Trusts, Softbank Vision Fund, Matrix Partners India Investments, Alpha Wave Ventures, Alpine Opportunity Fund, and Tekne Private Ventures also sold shares. The draft prospectus stated that the proceeds from the new share issue will fund capital expenditure for its cell manufacturing subsidiary for capacity expansion at the Ola Gigafactory from 5 GWh to 6.4 GWh, debt repayment or prepayment by Ola Electric, research and product development, and organic growth. The estimated cost of capacity augmentation is ₹1226 crore.
After Temasek and State Bank of India invested $384.43 million, including $240 million in debt, Ola Electric was valued at $5.4-5.5 billion in October.
Established in 2017, the company began deliveries in early 2022 and recorded a net loss before taxes of ₹267.1 crore in June and ₹1472.1 crore in FY23.
Our working history is brief… Ola Electric claimed in the draft filing that it delivered its first EV scooter in December 2021 and had losses and negative cash flows from operating activities in the three months ended June 30, 2023, and fiscals 2023, 2022, and 2021.
We may suffer operational losses in the near term as we invest in our business, grow our product portfolio, create capacity, and scale operations. For instance, the introduction of Ola S1 Air, Ola S1 X+, Ola S1 X (2 kWh), and Ola S1 X (3 kWh) and our strategy of expanding our sales footprint across international automotive markets could increase our operating costs “.Ola Cabs was planned to go public by Aggarwal.
Krutrum AI, founder Aggarwal’s new generative AI business, was announced last week as part of the Ola Group’s “joint family,” even though Ola Electric does not own a stock.
The prospectus warned that Aggarwal’s concentration on the new AI business could be risky.
