Ola Electric has secured approval from the Security Exchange Board of India (SEBI) for its much-anticipated initial public offering (IPO), six months after filing a draft red herring prospectus (DRHP).
The electric vehicle giant aims to raise Rs 5,500 crore ($660 million) through the IPO, as outlined in its DRHP filed in December 2023.
According to the DRHP, Bhavish Aggarwal holds the largest stake in Ola Electric at 36.94%, followed by SoftBank at 21.98%. Other major stakeholders include Tiger Global (6.03%), Indus Trust (3.85%), and Alpha Wave (3.49%).
In recent developments, Ola Electric secured $62 million in debt across two tranches, with a significant portion coming from EvolutionX in April. The company’s total equity and debt funding now exceeds $1 billion, with a valuation standing at $5.5 billion.
Financially, Ola Electric reported a seven-fold increase in revenue to Rs 2,631 crore in FY23. However, its losses also grew substantially by 87.76% to Rs 1,472 crore in the same fiscal year.
The IPO approval comes amidst a favorable market environment for startup listings in 2024, with notable companies like TBO tech, Digit Insurance, Awfis, and Ixigo already listed or preparing for IPOs. This year has seen a resurgence in startup IPO activity following quieter years in 2022 and 2023.
Competitor Ather Energy, led by Tarun Mehta, is also gearing up for its IPO, marking a competitive landscape shift in India’s burgeoning electric vehicle sector.
