Ola Electric's S1 Air e-scooters are
Credit: Reuters Photo
Bengaluru: Electric vehicle manufacturer Ola Electric on Friday filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi), which is the first step towards going public.
The first EV company to attempt a public listing in India, Ola Electric is looking to raise Rs 5,500 through the initial public offering (IPO) through issuing fresh equity shares, along with an offer for sale of 9.52 crore equity shares at a face value of Rs 10. Ola Electric chief executive Bhavesh Aggarwal will sell 4.74 crore shares, making up for 50% of the total IPO, along with a number of existing investors, as outlined in the draft papers.
The fresh funds will be utilised for multiple purposes, including Rs 1,264 crore for capital expenditure for its gigafactory, Rs 800 crore for debt repayment, Rs 1,600 crore for research and development of new products, along with Rs 350 crore for organic growth initiatives and general corporate purposes, as per the draft IPO papers.
The company, which has raised nearly $1 billion till date, was last valued at $5.4 billion. Existing investors that will divest shares include Aloha Wave Ventures, Tiger Global, Matrix Partners and SoftBank, as per the prospectus. Those running the books for Ola Electric’s IPO include Kotak Bank, Citi Bank, Bank of America, Goldman Sachs, BOB Capital, Axis Bank, ICICI and SBI.