Ola Electric Secures SEBI Approval for $660 Million IPO

By Ritwik Ghosh,Kolkata India

Ola Electric Secures SEBI Approval for $660 Million IPO

After a half-year wait subsequent to submitting a draft red herring prospectus (DRHP), Ola Electric has finally garnered approval from the Securities and Exchange Board of India (SEBI) for its ambitious initial public offering (IPO).

Back in December 2023, Ola Electric lodged the DRHP with the intention of amassing Rs 5,500 crore ($660 million) via a prospective public listing.

Per the DRHP, Bhavish Aggarwal holds the lion’s share in Ola Electric with 36.94% stakes, followed closely by SoftBank at 21.98%. Other notable stakeholders include Tiger Global, Indus Trust, and Alpha Wave with 6.03%, 3.85%, and 3.49% shares, respectively.

Since the DRHP submission, Ola Electric has procured $62 million in debt through two tranches, notably $50 million from EvolutionX in April. The latest tranche was reported earlier this month by Entrackr. To date, Ola Electric has amassed over $1 billion in equity and debt rounds, with its latest valuation pegged at $5.5 billion.

Ola Electric witnessed a phenomenal surge in FY23, with operational revenue catapulting sevenfold to Rs 2,631 crore. However, this meteoric rise was accompanied by an 87.76% increase in losses, amounting to Rs 1,472 crore for the fiscal year concluding in March 2023. The company has yet to submit its annual report for FY24.

Ola Electric’s chief rival, Ather Energy, is also on the brink of an IPO. Recently, Tarun Mehta’s firm facilitated an exit for early investor Sachin Bansal, who offloaded his 7.5% stake to Hero MotoCorp and Zerodha co-founder Nikhil Kamath.

The outlook for startup IPOs in 2024 appears promising. In stark contrast to the mere two IPOs in 2022 and five in 2023, this year has seen a resurgence with several internet companies like TBO Tech, Digit Insurance, Awfis, and Ixigo making their market debut. Meanwhile, other notable startups such as FirstCry, Mobikwik, Unicommerce, and Swiggy are in the pipeline, awaiting regulatory approval.

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