Ola Electric IPO: If you are planning to earn through Initial Public Offering i.e. IPO, there is good news for you. In fact, Ola Electric has received market regulator Sebi’s approval for the country’s first EV startup IPO. However SEBI has not said anything officially yet. SEBI is expected to formally announce the update in the coming days.
According to an ET report, Ola founder Bhavish Agarwal has internally informed a group of employees about the SEBI approval. Let us tell you that on December 22 last year, Ola Electric filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
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IPO details
In this IPO, apart from the Offer-for-Sale (OFS), the new issue raised Rs. 5,500 crore was proposed to be raised. The IPO raised Rs. 1,600 crore will be spent on research and product development. Apart from this, 800 crore rupees will be invested for loan repayment. The company raised Rs. 1,226.43 crore is planned to be spent. The company is planning to increase the capacity of the plant from five gigawatts to 6.4 gigawatts.
According to the IPO documents, CEO Bhavish Aggarwal is going to sell 47.4 million or 4.7 crore shares. At the same time, investors Alpha Web Venture II, DIG Investment IV AB, Matrix Partner India Investments III, LLC will also sell stake. Another investor Techne Private Ventures XV, Ltd is also selling stake.
Financial condition of the company
In the financial year ending March 2023, Ola Electric will generate Rs. 2,782 crore in revenue, a growth of about 510 percent. However, its losses widened to Rs 1,472 crore due to rising costs. As on June 30, 2023, the company’s total assets stood at Rs. 2,111 crores.