Ola Electric gets SEBI approval to launch IPO

SEBI, the stock market regulator, has cleared the path for Ola Electric to launch its IPO, making it the first electric vehicle company in India to do so.

Ola Electric has received approval to raise Rs 7250 crore through its IPO.

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On December 22, 2023, Ola Electric submitted draft papers (DRHP) to SEBI for its upcoming IPO.

The company plans to raise Rs 5500 crore through the issuance of new shares and another Rs 1750 crore through an Offer for Sale.

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Existing shareholders will sell 95.19 lakh shares in this offer, with Ola Electric’s founder Bhavish Aggarwal selling 47.3 lakh shares.

Additionally, other investors like Alfavev, DIG Investment, and Matrix will also sell their shares in the Offer for Sale.

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Ola Electric is set to be the first Indian EV company to launch its IPO.

This marks the first IPO by an automobile company in India in 21 years, with the last one being Maruti Suzuki (then Maruti Udyog) in 2003. Ola Electric’s IPO is anticipated to be a highlight of 2024.

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Kotak, ICICI, Bank of America, Goldman Sachs, SBI Capital, and Axis Capital are the investment banks handling Ola Electric’s IPO.

Ola Electric holds a significant 52% market share in the e-scooter segment, selling approximately 30,000 e-scooters monthly.


Their main emphasis is on affordable e-scooters, with prices starting at $1080.

The funds raised from the IPO will be allocated for capital expenditure, debt repayment, and research and development.


The plan includes spending Rs 1226 crore on capital expenditure, Rs 800 crore on debt repayment, and Rs 1600 crore on research and development.

Additionally, Rs 350 crore will be allocated for inorganic growth.

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