Ola Electric gets Sebi nod for IPO

    Ola Electric to invest a part of the funds to develop new products.

    Published On Jun 21, 2024 04:45:00 PM

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    Ola Electric, India’s largest electric two-wheeler maker, on Thursday received approval for its Rs 5,500 crore initial public offering (IPO) from the country’s market regulator, the Securities and Exchange Board of India.
     
    The issue will see existing investors, including founder Bhavish Aggarwal, selling up to 9,51,91,195 shares. Currently, Aggarwal is the largest shareholder with a 36.9 percent stake, followed by SoftBank’s SVF II Ostrich (DE) LLC with 22 percent. According to the draft papers, Aggarwal plans to sell 4,73,94,014 shares, while SVF II will offer 2,38,57,268.
     
    The company will use the funds raised from the issue to expand cell manufacturing capacity, repay debts, and support research and product development at its upcoming Giga factory in Krishnagiri, Tamil Nadu.
     
    Ola Electric sells three e-scooters—S1 Pro, S1 Air and S1 X—and has over 30 percent share of India’s electric two-wheeler segment, where it rivals brands such as Bajaj Auto, TVS Motor, Ather, and Hero MotoCorp. 
     
    The company is also coming up with electric bikes, with the first model expected in the first half of fiscal year 2026. 
     
    About six months ago, Ola Electric had filed draft papers for the IPO with the regulator, which issued an observation letter on June 10.
     
     

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