Electric two-wheeler company Ola Electric on Friday( 22 Dec) filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO)-- the first issue by an automaker in the country in more than 20 years.
The draft red herring prospectus (DRHP) states that the proposed initial public offering (IPO) consists of a new issuance of equity shares worth up to Rs 5,500 crore, along with a sale of 9.52 crore equity shares by promoters and investors.
The funds raised from the new offering will be allocated towards the subsidiary OCT's capital expenses for the Ola Gigafactory project, repayment of debt by subsidiary OET, investment in research and product development, expenses for organic growth initiatives, and general corporate purposes.
Ola Electric, headquartered in Bengaluru, specializes in the production of electric vehicles (EVs) and essential EV components like battery packs and motors. These manufacturing operations take place at Ola Futurefactory, a state-of-the-art facility located in Krishnagiri.
The organization is currently engaged in constructing an electric vehicle centre in the districts of Krishnagiri and Dharmapuri in Tamil Nadu, India. This centre encompasses the Ola Futurefactory, the forthcoming Ola Gigafactory, and suppliers located in the Krishnagiri district. In August 2021, Ola Electric launched its initial electric vehicle (EV) model, the 'S1 Pro'. Currently, they offer a range of five scooter models. Within just nine months of introducing their first EV scooter, Ola Electric has achieved the status of being the top-selling player in the electric two-wheeler (E2W) market in India, as per the E2W registrations recorded on the VAHAN Portal of the Ministry of Road Transport and Highways.
By June 2023, its market share in the E2W industry stands at 31%. The company plans to expand its reach by exporting EVs to targeted international markets. According to the preliminary documents, the company currently runs a direct-to-customer (D2C) omnichannel distribution network. This network consists of 935 experience centres located throughout India, including 414 service centres, as of October 31, 2023.
In the fiscal year 2023, the revenue from operations increased significantly to Rs 2,630.93 crore, which is more than seven times the revenue of Rs 373.42 crore from the previous year.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 will manage the offer. The equity shares will be listed on the BSE and NSE.
(With Input from agencies)
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